Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Revolut secures UK banking licence after three-year wait

by July 25, 2024
July 25, 2024
Revolut secures UK banking licence after three-year wait

The financial technology powerhouse Revolut has finally obtained a long-anticipated banking licence from the Bank of England’s Prudential Regulation Authority (PRA), enhancing its capability to compete with traditional high street banks and providing improved consumer protections for millions of UK customers.

Revolut’s pursuit of this licence spanned three years, significantly longer than usual due to a series of hurdles encountered during the application process. This landmark decision by the regulator allows the app-based company to begin offering loans, overdrafts, and other lending products to its nine million UK customers. Additionally, once Revolut launches its banking services, it will be covered by the UK’s Financial Services Compensation Scheme (FSCS), protecting customer deposits up to £85,000.

Nik Storonsky, co-founder and CEO of the London-based firm, celebrated this achievement, calling it an “important milestone”. Valued at $33 billion during its last fundraising round in 2021, Revolut is considered one of the crown jewels of Britain’s fintech sector.

Founded nine years ago by Storonsky and Vlad Yatsenko as a money transfer and foreign exchange service, Revolut has rapidly expanded to serve over 45 million retail customers in 38 countries, offering a wide range of services from cryptocurrency trading to insurance. Last year, the company reported revenues of £1.8 billion and pre-tax profits of £437.8 million.

Despite holding a European banking licence from the Bank of Lithuania, allowing it to operate within the EU, Revolut’s growth ambitions in its home market and beyond have been hampered by the absence of a UK licence. Without it, Revolut has been unable to compete directly with British banks, operating instead under an e-money licence that required using third-party banks to hold customer funds and prevented lending to UK customers. Consequently, Revolut has not been part of the FSCS.

Revolut’s application has been under intense scrutiny in the City, particularly due to its rapid growth. One significant obstacle was the company’s accounting practices, which drew attention when its auditor, BDO, raised concerns over nearly £477 million of its 2021 revenues, resulting in a qualified opinion on its accounts. These issues were later resolved in the 2022 report.

Further complicating matters was Revolut’s complex ownership structure, which it recently simplified to facilitate the licence approval. Now, Revolut has been granted “authorisation with restrictions,” initiating a “mobilisation” period to build the necessary systems and processes to operate fully as a bank. During this period, typically lasting about a year, Revolut can only hold £50,000 in total customer deposits and will continue to operate under e-money regulations in the UK.

Read more:
Revolut secures UK banking licence after three-year wait

0
FacebookTwitterGoogle +Pinterest
previous post
Biden says ‘The choice is up to you, the American people’ while saying he won’t seek re-election
next post
Election integrity group dishes out $50K to whistleblowers, 6-figure Olympics ad buy: ‘We’re watching’

You may also like

Regulators take over Silicon Valley Bank as failure...

March 12, 2023

The Power of No: Why, When and How...

May 9, 2025

Working Through Grief:  managing your return to work...

June 6, 2024

Industry leaders debate UK’s net zero action plan...

November 14, 2023

What is Biometric Verification?

September 18, 2024

The Benefits of Online Faxing for Efficient Business...

December 2, 2024

The Convergence of NaaS and SASE: A New...

November 11, 2024

Export dreams come true as government support secures...

August 31, 2023

Nigel Farage: I can’t think of any government...

May 15, 2024

Patient-Centered Care: PAM Health Shares How Acute Care...

April 16, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved