After three years of waiting, Revolut gets UK banking license, allowing it to offer loans

Money app Revolut has been granted a UK banking license by the Prudential Regulation Authority after a three-year wait.

In 2021, the company first applied for a licence from the Bank of England to expand into the UK.

But Revolut ran into problems with the application, failing to publish the accounts on time for two years in a row.

When Revolut’s 2021 accounts were finally published in March, they came under intense scrutiny, with auditors BDO saying the company could not independently verify three-quarters of its £636m turnover.

But the bank has now been given the green light by the regulator to enter the ‘mobilisation’ phase, and has banking license with restrictions.

According to Revolut, this is common practice for new banks so they can complete the build-out of their UK banking operations before entering the market.

The bank said nothing will change for UK customers during this limited period. UK customers can continue to use their Revolut e-money account as they always have.

Revolut has around 9 million customers in the UK, where it was founded in 2015, and more than 45 million globally.

Revolut already has a banking license in Europe and has been granted one in Lithuania.

Until then, the company operated with an e-money license in the UK and not a banking license.

One of the main differences between an e-money license and a banking license is that the former allows companies to offer loans.

Companies with a banking license can lend money, while companies with an electronic money license cannot.

Now that Revolut has a banking license in the UK, it is allowed to offer its customers new products, including mortgages. However, there is no indication that this is currently the case.

The company will also be included in the Financial Services Compensation Scheme (FSCS), which will allow customer deposits of up to £85,000 to be protected.

“We’re incredibly proud to have reached this significant milestone in the company’s history and are committed to making Revolut the bank of choice for UK customers,” said Nick Storonsky, CEO of Revolut.

Francesca Carlesi, CEO of Revolut in the UK, said: ‘Today’s announcement is a significant step forward for Revolut and for our customers. Being a UK bank comes with a huge responsibility and we will work tirelessly to provide products and services that improve the financial lives of everyone who uses Revolut.’