Revolut secures UK banking licence with restrictions, enters mobilisation stage
After a three-year wait, fintech firm Revolut has finally secured a UK banking licence with restrictions from the country’s Prudential Regulation Authority (PRA).
Revolut lands UK banking licence with restrictions
The fintech confirmed in a statement on Thursday that it is now entering the “mobilisation stage”.
“Nothing changes for UK customers during this restricted period, which is to allow new banks like Revolut to complete the build out of their UK banking operations ahead of launching in the market,” Revolut says. “Until then, UK customers can continue to use their Revolut e-money account as they always have.”
According to the PRA’s website, this stage enables new banks to “secure further investment, recruit staff, invest in IT systems and commit to third-party suppliers”.
During this stage, Revolut will be limited to holding only £50,000 of total deposits for customers.
“Mobilisation could take as little as a few months but cannot continue indefinitely and should take no longer than 12 months,” the PRA’s website further clarifies.
Revolut has been in pursuit of a UK banking licence since 2021, when it first lodged its application with the regulator.
Earlier this month, the company published record net profits of $428 million for 2023. The fintech also confirmed its intentions in April to increase its global headcount by 40% to around 11,500 staff over the course of this year.
Commenting on the latest developments, Francesca Carlesi, UK CEO of Revolut, describes the addition of a UK banking licence with restrictions as “a significant step forward for Revolut and for our customers”.
“It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut,” she continues.
Nik Storonsky, CEO of Revolut, adds: “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.”
