After three years of anticipation, the UK fintech company has finally received approval to proceed towards obtaining their full banking licence. Revolut, the British digital bank, has officially secured a banking licence from the Prudential Regulation Authority (PRA) in the United Kingdom after a lengthy wait.
This milestone enables the London-based fintech giant to hold customer deposits and offer various lending products such as credit cards, personal loans, and mortgages. Revolut announced on Thursday that they are now in the PRA’s “mobilisation” stage, which involves 12 months of restrictions.
During this mobilisation stage, also known as “authorisation with restrictions,” banks must demonstrate readiness to operate fully while addressing additional issues identified by the regulatory body before they can operate as a UK bank. For instance, Revolut can currently only hold up to £50,000 of total customer deposits and has limitations on certain new offerings.
This transitional phase is a standard process in the industry, with other new banks such as Monzo, Starling, Atom Bank, Zopa Bank, GB Bank, and Kroo having gone through similar stages. Nik Storonsky, CEO of Revolut, expressed pride in reaching this important milestone and emphasized their commitment to making Revolut the preferred bank for UK customers.
Established in 2015, Revolut has experienced rapid growth by providing customers with straightforward accounts, competitive foreign exchange rates, and the ability to withdraw cash in over 120 countries with one of their debit cards. The company also offers a premium app service with features like overseas medical insurance and the option to trade stocks and cryptocurrencies like Bitcoin and Ethereum.
With Revolut’s entry into the realm of fully licensed banking institutions, the competitive landscape of the UK’s financial services industry is expected to change, potentially prompting traditional banks to accelerate their digital transformation efforts. The formal banking licence for Revolut is great news for consumers who may benefit from increased competition in credit card rates and loans.
Francesca Carlesi, UK CEO of Revolut, highlighted the significance of this announcement and the company’s dedication to enhancing the financial well-being of its customers. Revolut’s recent record profits further solidify its position in the market, with the company expanding globally and attracting millions of customers.
Revolut’s expansion has outpaced that of competitors like Monzo and Starling, positioning the company as a key player in the fintech sector. With a European banking licence already in place, Revolut is set to offer lending products in various countries, further solidifying its presence in the market.
Overall, Revolut’s journey towards obtaining a UK banking licence marks a significant milestone for the company and its customers. The company’s commitment to providing innovative financial products and services is set to shape the future of banking in the UK and beyond. Please provide a new version of the text for me to rewrite.
Source link
