Revolut startup, which operates in the fintech industry, on Thursday, July 25, announced the receipt of a banking license in the United Kingdom.

For the mentioned company, headquartered in London, the specified license as a fact of a kind of new reality in the context of its business is of double importance. Now the startup can expand the scope of its activities in terms of services offered to customers. Also, obtaining a license is an important event for the company in a kind of historical context. The startup has been waiting for its functional status to expand for three years.

The banking license was obtained by Revolut from the Prudential Regulation Authority of the United Kingdom.

After obtaining the license, the company is expected to begin activities aimed at developing a new infrastructure. In this case, it means the functional basis for the implementation of banking operations. It is not yet known when the history of the company’s presence in a new segment will begin. With a high degree of probability, the launch of the relevant activity is the prospect of the foreseeable future.

Revolut applied for a banking license in the United Kingdom in 2021. Then the company had to face several sorts of delays and, within the framework of its experience, go through a long wait, which forms what can be conditionally designated as the condition of uncertainty regarding the future.

Revolut’s UK CEO Francesca Carlesi says that obtaining a banking license is a significant step forward for the company and its customers. Also in this context, she noted that functioning as a bank in the United Kingdom involves a tremendous responsibility. Separately, Francesca Carlesi stated that the company will work tirelessly to offer consumers products and services that will improve the financial lives of everyone who interacts with Revolut.

Obtaining a banking license means that the firm can take customer deposits. Also, in this case, it is possible to carry out activities to provide consumers with products such as loans and credit cards. After obtaining a banking license, Revolut will compete with financial services industry players such as Monzo and Starling, which seek to rival traditional financial institutions, including, for example, Barclays.

One of the reasons for the above-mentioned expectation, which lasted three years, was the discrepancy between the structure of Revolut shares and the rules of the Prudential Regulation Authority. Regulators required the company to collapse six classes of shares into ordinary shares. Revolut solved the specified problem. In this case, the ownership restructuring deal was concluded with a major Japanese technology investor SoftBank.

It is also highly likely that the decision to issue a banking license was impacted by the fact that Revolut’s financial performance improved last year. The company reported a pre-tax profit for 2023 of 438 million pounds ($545 million). It is worth noting that in 2022 Revolut recorded a pre-tax loss of 25.4 million pounds. The company’s revenue for 2023 amounted to 1.8 billion pounds. This indicator increased by 95% year-on-year.

Revolut’s statement notes that after obtaining a banking license, the company entered the stage of mobilizing its efforts in the United Kingdom. Currently, the company’s customer base in the UK is more than 9 million people.

Obtaining a banking license is a great victory for Revolut, one of the largest players in the financial services industry that has started its operations in the United Kingdom over the past decade.

Nikolay Storonsky, CEO of the company, said that the mentioned license is an important milestone in the journey of the firm, which will allow it to become the bank of choice for UK consumers.

It is worth noting that the last few years have been a period of high-intensity growth for Revolut. The company currently serves 45 million customers worldwide. As for Revolut’s prospects in the banking area, in this case, it is worth noting that consumers have recently increasingly opted for challenger lenders that offer flashy apps and a better user experience.

As we have reported earlier, Revolut to Hit $45 Billion Valuation After Share Sale.