British financial technology firm Revolut has received a UK banking licence with restrictions from the sector’s regulator. The licence brings Revolut, a global firm with more than nine million UK customers, closer to the same UK permissions as the traditional banks it seeks to compete against.
Revolut said in a statement it had now entered a „mobilisation” stage of its UK efforts, which will allow the firm to complete building its UK banking operations ahead of launching in the market.
The status allows new banks to invest in the final stages of their build-outs, according to the Prudential Regulation Authority’s website. During the 12 month period, new banks need to demonstrate they will be fully operational and address additional issues identified by the regulator before they can trade fully.
„Revolut now enters the ‘mobilisation’ stage, sometimes referred to as ‘Authorisation 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.” – the company explained.
Among the restrictions on authorised banks during ‘mobilisation’, banks can hold only £50,000 of total customers deposits. The ‘mobilisation’ stage, sometimes referred to as ‘Authorisation 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.
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.
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Revolut NewCo Ltd, a UK subsidiary of Revolut Group Holdings Ltd, is now a licensed UK bank. Revolut NewCo UK Ltd’s FRN (Firm Reference Number) is 981170. Until the mobilisation 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.
Banking 4.0 – „how was the experience for you”
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