Revolut, the UK’s most valuable fintech firm, has finally secured a UK banking licence after more than three years of waiting. The milestone achievement comes with some restrictions, but it marks a significant step forward for the company. The approval from the Bank of England allows Revolut to enter the mobilisation stage, where it will build its banking operations before an official launch.
The long process of obtaining approval was due, in part, to addressing various accounting and reputational concerns that have plagued Revolut in recent years. However, now that they have secured the banking licence, Revolut can transition from being an e-money firm to a fully-fledged bank. This means they will be able to hold customer deposits, potentially leading to new income streams through offering their own loans and mortgages.
While the UK licence opens up new opportunities for Revolut, it also brings stricter regulations and the requirement to guarantee customer deposits up to £85,000. Nevertheless, the approval from UK regulators is expected to pave the way for Revolut to expand into other key markets like the US.
The founder of Revolut, Nik Storonsky, expressed his pride in reaching this important milestone and promised to deliver on making Revolut the bank of choice for UK customers. With the banking licence in hand, Revolut is poised for significant growth and success in the financial sector.
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