Fintech giant Revolut authorized to become a UK Bank

Source: Crypto Briefing

Revolut, the crypto-friendly fintech giant, said Thursday it secured a UK banking license with restrictions from the Prudential Regulation Authority (PRA), the regulator overseeing the UK banking sector.

The license will allow Revolut to operate as an authorized bank, offering new services like loans and mortgages in its home market. However, since it’s still in the “mobilization stage,” a period designed for new banks to complete the build-out of their banking operations, nothing changes for Revolut UK customers, the firm stated.

“Until the mobilization stage is completed and the UK Bank is launched, Revolut’s UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the FCA,” Revolut stated.

Winning a UK banking license was on Storonsky’s Christmas wish list for 2022. Several factors, such as concerns regarding accounting practices and past regulatory issues, caused the delay, but the firm’s efforts have finally paid off.

“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 the CEO of Revolut.

With the license comes stricter regulations and the need to guarantee deposits up to £85,000, according to The Guardian. On the bright side, approval by UK regulators might encourage other countries, like the US, to follow suit.

The new status is also expected to expand Revolut’s user base, potentially onboarding a significant number of new users to crypto.

Revolut is considered one of the top crypto-friendly banks globally, offering features like multi-currency support, an integrated secure crypto exchange, and crypto-related financial services

The granting of the UK banking license is a major milestone for Revolut, as it allows the company to expand its offerings and solidify its position as a leading player in the fintech and crypto space in the country.

“Today’s announcement is 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,” said Francesca Carlesi, UK CEO of Revolut. “This is the next phase in Revolut’s journey in the UK – we can’t wait to get going.”

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Author: Vivian Nguyen