Revolut has finally secured its UK banking licence, more than three years after it applied with the regulators.
The UK’s most valuable fintech said it had received a UK banking licence with restrictions from the Prudential Regulation Authority (PRA), the regulator responsible for overseeing the UK banking sector.
Nik Storonsky, CEO of Revolut, heralded gaining a UK banking licence as an “important milestone”.
A UK banking licence will mean that Revolut can hold customer deposits, offering potentially lucrative lending and mortgage products, as well as having an official bank’s customer deposit protection.
It will also remove a millstone from its neck, as questions about whether Revolut would ever receive a UK banking licence had dogged the company, which has more than 45 million customers.
Revolut, which recently posted record profitts, said the mobilisation stage was a “common step” for many new banks in the UK.
During this period, in which Revolut will face a £50,000 limit on total customer deposits, Revolut will build out its UK banking operations ahead of a formal launch.
Revolut, which has a banking licence in Lithuania, applied for a UK banking licence in 2021.
While obtaining a UK banking licence can be as quick as 12 months, Revolut’s has taken much longer amid concerns from regulators about delays in filling its accounts and questions about its corporate culture.
Lead image: Revolut. Photo: uncredited.