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The digital bank said there will be no changes for UK customers as it enters into a ‘mobilisation’ period.
Revolut has received a UK banking licence subject to restrictions from the country’s banking regulator, the fintech announced today (25 July).
CEO Nik Storonsky hailed the achievement as an “important milestone” in the journey of the challenger bank with more than 9m customers in the UK and 45m globally. “We will ensure we deliver on making Revolut the bank of choice for UK customers,” he said.
Revolut has now entered what is known as the mobilisation stage, also referred to as “authorisation with restrictions”, which is a common step for many new banks in the UK, such as rivals Monzo and Starling.
Restrictions are applied by the Prudential Regulation Authority, the regulator responsible for overseeing the UK banking sector.
Revolut said there will be no changes for UK customers during this restricted period, which is meant to allow new banks time to complete the build out of their UK banking operations ahead of launching in the market.
Until a Revolut UK Bank is launched, the bank’s UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the Financial Conduct Authority, where their funds are safeguarded in accounts in line with the Electronic Money Regulations 2011.
Francesca Carlesi, CEO of Revolut in the UK, said the banking licence is a “significant step forward” for Revolut and its customers.
“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,” Carlesi said.
In its most recent earnings report, Revolut shared that it managed to nearly double its revenue in a year, surpassing $2.2bn and posting record profits before tax of $545m. Recent reports suggest the company could be valued at $40bn in a share sale.
Earlier this month, Revolut revealed it is working on a mortgage product aimed at users of the banking app in Ireland and may launch it as soon as next year.
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