Revolut Secures U.K. Banking License After Three-Year Wait

Leading international fintech startup Revolut has finally been granted a banking license in the United Kingdom following a drawn-out three-year application process. With this accomplishment, the London-based company takes a big step forward and is better positioned to grow its financial services offering.

Revolut is now operating under the “mobilization stage,” which is intended to allow new banks to start up with specific limitations, according to the Prudential Regulatory Authority (PRA). This phase is essential because it lays the groundwork for Revolut to someday function in the UK as a bank with a full license. The license also allows for the provision of cryptocurrency services, strengthening Revolut’s already strong digital currency activities.

Revolut has facilitated cryptocurrency trading for several years and recently launched a dedicated cryptocurrency exchange aimed at experienced traders. This development aligns with their broader strategy to integrate comprehensive financial services under one platform.

Strategic Growth and Valuation

This week, Revolut also revealed plans to sell $500 million worth of employee-owned shares. This move is expected to boost the company’s valuation to an impressive $45 billion, solidifying its position as one of the world’s most valuable fintech startups.

Revolut’s expansion into traditional banking complements its diverse range of services, which includes payments, currency exchange, and now, an enhanced focus on cryptocurrency. The new banking license will enable Revolut to offer more traditional banking services alongside its innovative digital solutions.

The company’s entry into the mobilization stage signifies a pivotal moment in its journey towards becoming a fully operational bank in the U.K. “We are excited to have reached this milestone,” Revolut stated, emphasizing their commitment to providing comprehensive financial solutions to their users.

Revolut’s development in the fintech industry shows that it can adjust and expand in a very competitive industry. The company is now positioned to provide a greater range of financial services and further integrate traditional and digital banking for its clients after obtaining this banking license.

Revolut is poised to transform the financial environment in the United Kingdom and beyond, having secured a new banking license and a solid foundation in fintech innovation.