Crypto-friendly fintech Revolut secures banking license from UK financial regulator

Revolut announced Thursday that it has received a banking license from UK financial regulators. 

The approval of a preliminary banking license from the UK's Prudential Regulation Authority (PRA) marks the culmination of a rigorous three-year application process for the fintech firm.

"We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers," Revolut CEO Nik Storonsky in a statement.

Approval comes with restrictions

Revolut said it had received the license from the PRA with restrictions, as it now enters a "mobilization" stage before obtaining a full licence. During this "mobilization" period, banks face a range of restrictions, such as a £50,000 limit ($64,000) on total customer deposits.

On Thursday, the bank sent a notice to its UK-based customers, stating, "We are now entering a 'mobilization' period, a common regulatory stage for many new banks. During this period, we will complete the setup of our banking processes before beginning operations as a bank in the UK." Once it fully enters the market, the fintech will be able to offer products such as mortgages and credit cards in addition to its existing e-money services.

The London-based business, which first applied for a license from the UK regulator back in 2021, has around 9 million customers in the UK, and more than 45 million globally. The company recorded a £344 million profit for 2023, compared to £6 million the previous year, while revenues nearly doubled to £1.8 billion.

The firm launched in the UK offering money transfers in 2015 and began allowing users to buy, hold and exchange cryptocurrencies in 2017. Since then, it has become one of UK’s largest fintech companies and has reached more than 40 million customers worldwide.