Revolut’s long-running efforts to secure a UK banking licence have culminated in success, as the Prudential Regulation Authority (PRA) has granted the licence, albeit with certain restrictions.
After three years of navigation involving compliance issues and persistent delays in filing account statements, Revolut’s growth has been remarkable, now boasting over 42 million customers worldwide. Regulatory concerns have been alleviated thanks to impressive revenues exceeding $2.2 billion in 2023 and a record pre-tax profit of $545 million. Additionally, a recent restructuring of its share ownership, consolidating six classes of shares into a single class, has clarified its ownership structure and contributed to this development.
Revolut has now progressed to the ‘mobilisation’ stage, also known as ‘Authorisation with Restrictions,’ a common phase for many new banks in the UK. Once the necessary infrastructure is in place and full authorisation is granted, the fintech will be positioned to expand its deposit base and offer products such as loans, mortgages, and credit cards, in addition to its current e-money services, posing a significant challenge to traditional banking institutions.
Nik Storonsky, CEO of Revolut, expressed pride in reaching this significant milestone, stating, “We are incredibly proud to reach this important milestone in the journey of the company, and we will ensure we deliver on making Revolut the bank of choice for UK customers.”