Revolut has received a UK banking license.
The global Fintech now enters the PRA’s ‘mobilization’ stage, “having received authorization with restrictions, designed for new banks to complete the build out of their banking operations.”
During this mobilization stage nothing changes for Revolut UK customers.
Revolut, the global fintech with over nine million UK customers and 45 million globally, has announced that it has received its UK banking license with restrictions from the Prudential Regulation Authority (PRA), the regulator responsible for overseeing the UK banking sector.
Revolut now enters the ‘mobilization’ stage, sometimes referred to as ‘Authorization with Restrictions’, a common step “for many new banks in the UK.”
Nothing changes for UK customers during this restricted period, which is to allow new banks “like Revolut to complete the build out of their UK banking operations ahead of launching in the market.”
Until then, UK customers can continue “to use their Revolut e-money account as they always have.”
Nik Storonsky, CEO of Revolut, commented:
“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.”
Francesca Carlesi, UK CEO of Revolut, commented:
“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. This is the next phase in Revolut’s journey in the UK – we can’t wait to get going.”
Revolut recently published its financial accounts “for 2023, announcing that Group revenues surpassed $2.2bn, with record profits before tax of $545m.”
Revolut NewCo Ltd, a UK subsidiary of Revolut Group Holdings Ltd, is now a licensed UK bank.
The ‘mobilization’ stage, sometimes referred to as ‘Authorization with Restrictions’, is a common industry process, “with many new banks having gone through this, including: Monzo, Starling, Atom Bank, Zopa Bank, GB Bank and Kroo.”
Among the restrictions on authorized banks during ‘mobilization’:
- Banks can hold only £50,000 of total customers deposits
- 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, where their funds are safeguarded in accounts in line with the Electronic Money Regulations 2011.
