UK-based financial technology group Revolut, which has 45 million customers globally, has finally secured a banking licence from its home regulator, ending a three-year wait for the nod.
The group said on Thursday that it has now entered a “mobilisation” stage, which will allow the firm to complete building out its banking operations in advance of launching in the market. As it goes about this process, the UK banking authorisation carries restrictions, such as not building its deposit book beyond £50,000 (€59,440).
The status allows new banks to invest in the final stages of their build-outs, according to the Prudential Regulation Authority’s website. During the 12 month period, new banks need to demonstrate they will be fully operational and address additional issues identified by the regulator before they can trade fully.
It is a major victory for Revolut, one of a handful of financial services apps – commonly known as fintechs – to have emerged in Britain over the last decade, offering services without physical branches.
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“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,” said Nik Storonsky, chief executive of Revolut.
Revolut already has a Lithuanian banking licence, which allows it to offer banking services across the euro zone, including Ireland.
Customer numbers in the Republic increased by 21 per cent last year to 2.7 million, or roughly one in every two individuals in the State. The company has set its sights on increasing its Irish customer base to above three million this year.
The UK authorisation comes less than a month after Revolut published its latest annual results, the first time it has filed before a September deadline in three years. The previous delays had led to heightened scrutiny from UK regulators of the company’s licence application.
The results showed the group posted a better-than-expected $428 million (€398 million) profit last year as revenues soared 95 per cent to $2.2 billion.
Revolut has previously signalled that it would look to enter the home loans market first in Lithuania. – Additional reporting, Reuters
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