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Revolut said it had secured a UK banking licence, ending a more than three-year long tussle with regulators and delivering a boost to the fintech’s expansion plans in its home market.
The London-based company said on Thursday it had received the licence from the Prudential Regulation Authority, which first received an application from Revolut in early 2021.
The application ran into multiple problems, including a warning from auditors that they could not fully verify revenue figures in the group’s 2021 accounts.
Revolut already has a European banking licence from authorities in Lithuania, but its prospects have hinged on securing one in Britain. A UK banking licence will allow the fintech to widen the products and services it can offer in its biggest market.
“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 chief executive Nik Storonsky.
Revolut said it had received the licence from the PRA with restrictions, a status the fintech said would allow it to build out its UK banking operations before launching them. Revolut has about 9mn customers in the UK, where it was founded in 2015, and more than 45mn globally.
The company, which was last valued at $33bn in a 2021 fundraising round, is in talks to sell about $500mn worth of shares in a deal that would value the company at about $40bn.
According to guidance from UK regulators, banking licences are typically awarded within 12 months following an application. Revolut has embarked on an aggressive overseas expansion, making it far bigger than other lenders the PRA has handed a UK licence to in recent years.
The PRA did not immediately respond to a request for comment.
Francesca Carlesi, who joined Revolut at the end of last year as chief executive of its UK entity that applied for the licence, said: “Today’s announcement is a significant step forward for Revolut and for our customers.”
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