Revolut set to secure UK banking licence within weeks after releasing late accounts

Fintech darling Revolut is poised to bag its UK banking licence in weeks, The Mail on Sunday reported.

The digital bank is on track to clear a major hurdle to receiving formal recognition from regulators this week when it releases its long overdue financial accounts for 2021.

Its 2021 numbers – which are set to be released on Wednesday and signed off by auditor BDO – are expected to mark its first full year profits. 

If Revolut does receive its licence, it would put an end to a long campaign by the firm, headed by chief executive Nik Storonsky, 38, to gain recognition that it is operating in line with legal requirements and consumer protections.

UK banking licences are signed off by the country’s two most foremost financial watchdogs, the Prudential Regulation Authority, which sits within the Bank of England, and the Financial Conduct Authority.

Securing a licence allows banks to lend money, which is becoming more attractive due to interest rates hitting their highest level in 15 years at four per cent.

Revolut is the UK’s largest fintech, valued at nearly £30bn. 

It initially started out by offering currency exchange cards, but now provides many typical banking services.

The company has ridden the wave of Brits shunning physical cash and opting for mobile-based banking.

Revolut said it does not comment on ongoing licence applications.

Its rival Monzo, famed for its coral coloured debit card, has held a banking licence for several years. Another bank, Starling, also has its licence.

Revolut has succeeded in securing banking licences in a host of other markets, including several across western Europe. 

Last week it announced plans to hire around 1,700 people in London over the next year as it continues its expansion, which will be supercharged in the UK if it secures the much sought-after licence.