It’s about time: Revolut secures a full European banking licence
Fintech banking startup Revolut has finally secured a full European banking licence, more than a year after first applying for authorisation in Lithuania.
As such, the banking-app-turned bank has today unveiled plans for full current accounts in Europe, as well as future efforts in developing its own consumer lending product.
The startup will launch with the licence in smaller European countries at the start of next year, followed by an eventual passporting of the licence into the UK and other key markets within three to six months.
It was not made clear how this might work should financial passporting laws be rescinded as part of Brexit.
Co-founder and chief Nikolay Storonsky said the digital bank’s vision is to compete with traditional lenders, allowing both retail and business users to apply for a loan in under two minutes.
"We'll remove the bureaucratic process and come in cheaper than traditional lenders," he added.
The app currently allows users to apply for loans through a partnership with fellow UK fintech Lending Works. A spokesperson for Revolut said this relationship will remain in place alongside its own offering.
The fintech firm, which is said to be in talks with Japanese mega-investor Softbank about a fresh investment of $500m (£394.8m), opens between 8,000 and 10,000 current accounts daily. Though it temporarily broke even on a monthly basis this time last year, it has struggled to maintain continuous profitability.
Plans to launch its services in other geographies such as the United States have been under pressure in recent months, due to the country's strict regulatory environment.
The news comes after Revolut secured authorisation in Singapore and Japan last week, operating under a similar licence to that of its UK e-money licence from the Financial Conduct Authority.
Storonsky said: "With the banking licence now secured, commission-free stock trading progressing well and five new international markets at final stages of launch, we are living up to our reputation as the 'Amazon of banking'."