Revolut has achieved a significant milestone by securing a banking license from the Prudential Regulation Authority (PRA) in the U.K. This achievement comes after the London-based fintech company’s efforts since 2021.
With 45 million customers globally, Revolut considers the U.K. market, where it serves 9 million clients, as its most crucial. The company offers a wider range of products and services in the U.K. compared to other markets.
While already holding a banking license in the European Union, Revolut has faced limitations in the U.K., affecting its ability to offer credit products and have control over its infrastructure.
Revolut’s co-founder and CEO, Nik Storonsky, expressed pride in achieving this milestone, emphasizing their commitment to making Revolut the preferred bank for U.K. customers.
However, the transition for Revolut’s customers will be gradual as the PRA has granted an authorization with restrictions, entering the “mobilization” stage, a process familiar to other challenger banks like Monzo and Starline.
During the mobilization phase, which may last up to 12 months, the bank is limited in holding customer deposits above £50,000. Revolut’s U.K.-based customers will not be transferred to the new subsidiary holding the license just yet.
In its recent annual report, Revolut disclosed $2.2 billion in revenue in 2023 (£1.8 billion) and a pre-tax profit of $545 million (£438 million), demonstrating growth and financial transparency, which likely influenced the PRA’s decision.
