Revolut Secures UK Banking License After Three Years Wait

Revolut, the UK-based online banking platform, has successfully obtained a banking licence from the Prudential Regulation Authority (PRA) and is now entering the 'mobilization' stage. This crucial phase, also known as authorization with restrictions, is a standard industry process that allows Revolut to prepare for full-scale banking operations while maintaining uninterrupted service for its customers.

During the 'mobilization' stage, Revolut NewCo Ltd, a UK subsidiary of Revolut Group Holdings Ltd, is permitted to hold a maximum of GBP 50,000 in total customer deposits. This stage is designed to ensure that the bank meets all regulatory requirements before it fully launches its banking services. In the meantime, Revolut Ltd, a UK e-money institution regulated by the Financial Conduct Authority (FCA), will continue to serve Revolut's UK customers under the Electronic Money Regulations 2011, ensuring that their funds are protected.

The CEO of Revolut highlighted the company's commitment to becoming a preferred banking option for UK customers, describing the new license as a significant milestone in Revolut's growth. The company plans to expand its offerings in the UK by the end of the year, including obtaining an Italian IBAN, which would facilitate the introduction of additional services such as credit cards, Buy Now, Pay Later options, and potentially mortgages. This expansion is part of Revolut's broader strategy to enhance its financial services and provide comprehensive solutions to its users.