Revolut lands full UK banking licence after four-year wait
Revolut has landed its full UK banking licence following a four-year wait for the permit.
The $75bn fintech juggernaut has been in the mobilisation stage for over 18 months after being granted approval for the licence last July.
The final green light from the banking watchdog hands the digital bank permission to formally start lending in its home market and will beef up its regulatory scrutiny.
Nik Storonsky, Revolut’s top boss, said: “Launching our UK bank has been a long-term strategic priority for Revolut, and marks a significant moment in our journey”.
“The UK is our home market and central to our growth.”
The fintech chief said in September at the launch of the firm’s global headquarters that finally clutching the full-fat UK licence was the “number one priority”.
The securing of the licence follows the firm hitting 13 million customers in its home market.
Revolut’s rocky regulatory road
Controversy has followed the neobank’s pursuit of the licence with Governor of the Bank of England Andrew Bailey understood to have blocked a meeting ordained by Chancellor Rachel Reeves between Revolut and regulators.
The Chancellor had hoped the summit would help drive Revolut’s goal to become a fully fledged bank in the UK, according to the FT, but Bailey derailed the meeting over concerns regulation should be independent from political interventions.
Reeves has attempted to woo the London-born company in hopes of landing a City listing, including an appearance at the new headquarters after the firm unveiled plans to invest £3bn into the UK.
But – whilst no formal decision has been taking over a listing venue – Storonsky has continued to pour cold water over hopes for the City, previously branding it “not rational” when compared with the deeper liquidity offered in the US.
Storonsky has previously blasted the “extreme bureaucracy” in the UK, citing “extra cautious” regulation as a hurdle in obtaining the licence.
The firm had expected to seal the deal on the permit last year, but faced complexities as the single largest company to ever enter the mobilisation period.
Last week, the firm announced its second bid to crack the US market with the pursuit of a national bank charter.
It marks Revolut’s second swing to secure a US banking license after it’s first in March 2021 through Californian regulators.