LONDON – British fintech company Revolut yesterday said it had obtained a long-awaited UK banking licence – but must wait to lend money and take deposits as it remains in a restrictive phase. 

The licence granted by regulators linked to the Bank of England will allow Revolut to eventually compete better with established UK lenders, such as HSBC and Barclays.

It is seen also as a gateway to gaining bank licences around the world. Revolut has already secured such authorisation in the European Union. In the UK, the Prudential Regulation Authority has granted the fintech entry into the “mobilisation” stage, Revolut said.

This was a “UK banking licence with restrictions”, it added, noting the move would give it time to build operations for eventual customer rollout.
Revolut, which has waited more than three years for the licence amid regulatory caution, has over nine million UK customers, around one-fifth of its global total.

“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,” chief executive Nik Storonsky said in a statement. The group last year earned pre-tax profits of US$545 million on revenues of more than US$2.2 billion. – Nampa/AFP