Revolut Applies for UK Banking License - Latest News

It may come as a surprise that the fintech company Revolut currently operates without a full banking license within its original country of establishment. However, this situation is poised to shift, as the firm has submitted an application for a banking license in the United Kingdom. The application will now be reviewed by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

Revolut already possesses a banking license within the European Union. This license was issued by the Bank of Lithuania, and the company utilizes European passporting regulations to provide services across various European nations.

The company is gradually introducing its own banking services throughout Europe. Currently, Revolut is piloting a credit offering in select European markets.

Revolut positions itself as a comprehensive financial application. Upon registration, users receive an electronic wallet and a debit card, enabling them to send and receive funds, maintain balances, and make purchases both in physical stores and online.

In recent years, Revolut has significantly broadened its capabilities beyond this initial framework. Users can now trade cryptocurrencies, stocks, and commodities, as well as allocate funds to savings “vaults.” Additionally, the platform provides access to travel and mobile phone insurance options.

Certain of these functionalities were developed internally, while others were implemented through collaborations with other fintech businesses. Despite the extensive range of services available through a Revolut account, it does not yet qualify as a fully licensed bank in the U.K.

While this has facilitated substantial growth, it can present constraints regarding potential revenue streams and the scope of products offered. Obtaining a banking license would allow Revolut to provide complete banking services, including current accounts with overdraft facilities and loan options, within the U.K. The company could also introduce credit card products.

Furthermore, customers would gain the protection of the Financial Services Compensation Scheme (FSCS). Should Revolut encounter financial difficulties, depositors would be safeguarded up to £85,000 per individual.

Revolut currently serves 13 million customers and is valued at $5.5 billion. Although the company does not disclose user statistics by specific country, the U.K. remains a key market for its operations.