British fintech Revolut announced that it had secured a UK banking license with restrictions from the Prudential Regulation Authority, ending a three-year-long wait. This authorization brings the global fintech, equipped with more than nine million UK customers, closer to operating full licenses in Britain.
Revolut said it had now entered the “mobilization” stage, sometimes called “Authorisation with Restrictions.” Francesca Carlesi, UK CEO of Revolut, said that it was a significant step forward for the firm and its 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.”
The fact that Revolut’s share structure did not comply with PRA regulations was one of the main reasons for the delay in obtaining a banking license. The corporation was mandated by British regulators to convert all six classes of shares into common shares.
The issuance of the banking license follows Revolut’s financial stability regaining in 2023. After posting a pre-tax loss of £25.4 million in 2022, the corporation turned a profit this month with a pre-tax profit of £438 million ($545 million) for 2023. Group revenues increased from £920 million in 2022 to £1.8 billion, a 95% increase.