Revolut, the crypto-friendly fintech company based in London, has finally secured a banking license from UK financial regulators after a rigorous three-year application process. This approval from the Prudential Regulation Authority (PRA) represents a significant step in Revolut’s expansion and solidifies its position in its home market.
Navigating the Regulatory Landscape
On July 25, Revolut announced the receipt of its preliminary banking license, a milestone that CEO Nik Storonsky described as a proud moment for the company. “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,” Storonsky stated. However, the license comes with restrictions during a “mobilization” period, limiting total customer deposits to £50,000 ($64,000).
Building Towards Full Banking Operations
During the mobilization period, Revolut will complete the setup of its banking processes before launching full operations in the UK. Once fully operational, Revolut plans to offer an array of banking products, including mortgages and credit cards, in addition to its existing e-money services. This gradual rollout is designed to ensure stability and compliance with regulatory standards.
Expanding Global Reach
Since its founding in 2015, Revolut has grown rapidly, now serving around 9 million customers in the UK and over 45 million globally. The fintech company, which started by offering money transfers and later expanded into cryptocurrencies in 2017, has become one of the UK’s largest fintech firms. In 2023, Revolut reported a substantial profit of £344 million, up from £6 million the previous year, with revenues nearly doubling to £1.8 billion.
Revolutionizing Crypto Services
Revolut has also made significant strides in the crypto space. Earlier this year, it launched “Revolut X,” a dedicated crypto exchange for its UK retail users, promising low fees and easy fiat-to-crypto conversion. Additionally, Revolut integrated with MetaMask to allow direct in-app crypto purchases for its UK and European Economic Area customers. Despite suspending its cryptocurrency services in the U.S. since August 2023, Revolut continues to innovate and expand its crypto offerings globally.