Revolut today announced that it has submitted its application for a bank licence in the United Kingdom to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), the next important step in its plans to create its ‘financial super app’.
A UK banking licence will allow Revolut to further progress its development of highly personalised products to meet customers’ financial needs. The banking licence allows Revolut to provide full-service current accounts with essential products such as overdrafts, loans and deposit accounts.
Revolut has already created a number of personalised products such as commission-free stock trading, cryptocurrency trading, savings wallets, junior accounts and rewards.
In addition to Revolut’s financial crime and anti-money laundering tools, on the approval of the licence customers would have the additional security of deposit protection under The Financial Services Compensation Scheme (FSCS) up to £85,000 per person.
Nik Storonsky, Founder and CEO at Revolut, said: “A UK banking licence allows us to provide the essential financial products UK customers expect from their everyday primary bank account, such as loans, credit cards, overdrafts and deposit accounts, coupled with the additional trust and security that is offered through FSCS protection.
“We want to be the best in class for customer experience, value and capabilities, and offering full bank accounts allows us to do just that. In the future, we want to offer many more innovative products to our UK customers and we are excited to continue driving innovation and competition in the banking industry. Becoming a fully licenced bank in the UK is a central pillar of that ambition.”
Former Standard Chartered European CEO, Richard Holmes joined Revolut in October 2020 as an advisor to the board with a brief to develop Revolut’s bank proposition. His responsibilities include developing the board and leadership team for the new entity.
Since launching in 2015, Revolut has attracted over 13 million customers and employs over 2,000 people worldwide, with around 800 based in London.
In July 2020, Revolut closed its Series D round with an $80m extension, for a total of $580m at the same $5.5bn valuation, despite the fallout from the coronavirus pandemic.