Three-year wait for Revolut ends as UK banking licence is awarded

FINTECH pioneer Revolut has been handed a UK banking licence.

The London-based firm has waited more than three years to receive the authorisation which, it says, comes with some restrictions over the first 12 months before it can directly compete with traditional banks in the UK.

A UK banking licence should pave the way for Revolut to bring its nine million UK customers towards the same facilities and permissions as mainstream banks.

Its new status means Revolut now enters the ‘mobilisation’ stage, often referred to as ‘Authorisation with Restrictions' - a common step for many new banks. It means that, while nothing changes for UK customers during the restricted period, it allows Revolut to complete the build out of its UK banking operations ahead of launching in the market.

The 12 months of 'mobilisation' provide new banks with time to secure investment, recruit staff, shore up systems, and execute necessary security measures.

“Today’s announcement is a significant step forward for Revolut and for our customers," said Francesca Carlesi, UK CEO of Revolut‍.

"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.”

CEO Nik Storonsky, who founded Revolut in 2015, added: "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.”