Key Takeaways:
- Revolut has secured a U.K. banking licence from the Prudential Regulation Authority, allowing it to expand its banking activities gradually.
- Revolut has secured licence after 3 years of waiting
London-based fintech company Revolut has reached a significant milestone by securing a banking licence from the Prudential Regulation Authority (PRA) in the U.K. After three years of persistence, this approval marks a pivotal moment in Revolut’s journey towards becoming a fully-fledged bank.
Although initially granted with certain constraints, the licence will allow Revolut to gradually expand its banking activities, setting the stage for a comprehensive rollout.
“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,” said Revolut CEO Nik Storonsky.
The company, founded in 2015, has rapidly grown its customer base to nine million users in the U.K. and over 45 million globally, making it one of the world’s most valuable fintech startups.
Revolut’s valuation soared to $33 billion during a 2021 fundraising round, and the firm is now in discussions to sell shares worth about $500 million, potentially boosting its valuation to approximately $40 billion.
Daniel Waterhouse, a general partner at Balderton Capital, which led Revolut’s Seed and Series A rounds, highlighted the significance of this achievement, calling it a “huge milestone.”
The PRA’s approval places Revolut in the mobilization stage, allowing the company to progressively expand its offerings in the U.K. Francesca Carlesi, U.K. CEO of Revolut, emphasized the responsibility of being a bank in the U.K. and the company’s commitment to improving the financial lives of its customers.
Revolut has also made notable strides in the cryptocurrency industry. In May, it launched Revolut X, a standalone crypto exchange designed for retail customers, providing a competitive platform with low fees and easy on/off-ramping.
The firm has allowed the buying and selling of cryptocurrencies for several years and continues to innovate with offerings like the Revolut X platform, which caters to both professional and retail traders.
Revolut’s financial performance has been impressive, with revenues surpassing $2 billion last year and pre-tax profits of $545 million. Despite the suspension of cryptocurrency services for U.S.-based customers since August 2023, Revolut has continued to expand its crypto initiatives, including a collaboration with Solana on a “Learn and Earn Campaign” to boost the user base of the memecoin Bonk (BONK).
