Revolut lastly granted UK banking licence – greater than three years after claiming inexperienced mild was ‘imminent’

Financial technology firm Revolut has finally secured a full banking licence in the UK – three years after saying that it would be ‘imminent’.

The all-clear from the Bank of England’s Prudential Regulation Authority (PRA) follows a prolonged saga after the company first applied for the licence in 2021.

Getting the green light now will mean it is able to push into markets dominated by traditional banks.

Revolut, founded in 2015, already offers payment services and the ability to trade stocks and cryptocurrencies, and has 13m customers in the UK and 70m around the world.

It was valued at £56bn in its most recent funding round last year, putting it roughly on a par with established lenders Barclays and Lloyds, and worth more than NatWest.

Revolut already has a banking licence in Europe, approved by authorities in Lithuania.

But being given a green light in Britain has proved a tortuous process, frustrating investors and bosses alike.

Founder Nik Storonsky said a full banking licence had been a ‘long-term strategic priority’

In March 2023, Revolut claimed that the licence’s approval was ‘imminent’.

But there was a hiccup when the company’s auditors said £477m of revenue – around three-quarters of turnover for 2021 – could not be verified and may have been misstated.

The delay prompted co-founder and chief executive Nik Storonsky to throw a tantrum at the ‘long and tiring’ saga and attack the UK as a place to do business.

Eventually, in July 2024, it was granted a licence ‘with restrictions’ from the PRA.

It then began a ‘mobilisation’ phase during which it could hold a maximum of just £50,000 in total customer deposits – a process that normally takes no more than 12 months, but which also dragged on.

Reports suggested the saga was closely watched by the Government, with Chancellor Rachel Reeves trying to broker a meeting between Revolut and PRA officials before being rebuffed by Bank of England Governor Andrew Bailey.

Yesterday’s announcement that it has finally received a licence will enable it to start lending in Britain and offer deposits that will be protected up to the value of £120,000 under the Financial Services Compensation Scheme.

Revolut said it would gradually begin the process of rolling out current accounts to new customers in a few days.

Storonsky 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.

‘We look forward to introducing a full suite of banking services to our millions of UK customers.

‘This is a vital step in our mission to build the world’s first truly global bank.’

Revolut’s headquarters are in London and it has expanded aggressively, opening offices in countries including Mexico, Brazil and New Zealand.

The group has a target of launching in 30 new markets by 2030 and recently announced a £10bn investment across its global operations over the next five years.

Last week, it announced that it had applied for a banking licence in the US.

And last September, Revolut unveiled proposals to put £3bn of global investment into its UK expansion and create 1,000 jobs.