After a three-year wait, Revolut has secured a banking license in its home country. The British FinTech announced Thursday (July 25) that it had been granted the license, with restrictions from the country’s Prudential Regulation Authority (PRA), an arm of the Bank of England that oversees the U.K.’s banking industry. From here, Revolut enters what […]
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After a three-year wait, Revolut has secured a banking license in its home country.
The British FinTech announced Thursday (July 25) that it had been granted the license, with restrictions from the country’s Prudential Regulation Authority (PRA), an arm of the Bank of England that oversees the U.K.’s banking industry.
From here, Revolut enters what is known as the “mobilization” stage, also referred to as “Authorization with Restrictions,” a typical step for many new U.K. banks.
“Nothing changes for U.K. customers during this restricted period, which is to allow new banks like Revolut to complete the build-out of their U.K. banking operations ahead of launching in the market,” the company said in a news release. “Until then, U.K. customers can continue to use their Revolut e-money account as they always have.”
The company had first applied for a banking license in 2021, and saw the process take longer than usual, as Revolut faced scrutiny over its size, as well as issues with its financial reporting.
“Today’s announcement is a significant step forward for Revolut and for our customers,” said Francesca Carlesi, U.K. CEO of Revolut. “It is a tremendous responsibility to be a bank in the U.K. and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut.”
The license marks a series of good fortune for Revolut, which began July by announcing that its revenues had jumped 95% last year, from $1.1 billion in 2022 to $2.2 billion in 2023.
The company also reported profit before tax of a record $545 million, with Revolut adding 12 million new customers in 2023 — the FinTech’s third profitable year — bringing their total customer base to 45 million as of last month.
This week also saw reports that Revolut was planning a share sale that would value the company — already the world’s most-valuable FinTech startup — at $45 billion.
A report by the Wall Street Journal said this would set the stage for an initial public offering (IPO). The company declined to comment on the sale when reached by PYMNTS.
Assuming Revolut is ready to go public, there’s no guarantee that the company will do so in its home country. Chairman Martin Gilbert said recently that he wasn’t ready to commit to a London IPO, even as he praised pending changes to the regulations for listing on the U.K. market.
“All the moves [regulators] are making are good, they’re allowing founder-led companies like Revolut to list here rather than just have no choice,” Gilbert said. “But again let’s see how it all pans out, the proof will definitely be what happens in the future.”
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