Revolut cards is seen in this illustration photo taken in Krakow, Poland on March 29, 2024.
Jakub Porzycki | Nurphoto | Getty Images
British fintech startup Revolut on Thursday that it had received a preliminary banking license with restrictions from the U.K.’s Prudential Regulation Authority, bringing to an end a three-year wait.
The London-headquartered firm now has time to build up its U.K. banking infrastructure and operations ahead of officially launching.
Revolut first applied for its banking license in 2021, but it has faced lengthy delays.
“Today’s announcement is a significant step forward for Revolut and for our customers. It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut,” Revolut’s UK CEO Francesca Carlesi said in a statement.
A U.K. banking license will allow Revolut to take customer deposits and also issue products like loans and credit cards. It joins a host of other challenger banks like Monzo and Starling, which are aiming to rival traditional banking players like Barclays.
One of the key issues around the delay to receiving a banking license was Revolut’s share structure being inconsistent with the PRA’s rules. British regulators required the company to collapse its six classes of shares into ordinary shares.
Revolut has since resolved this, striking a deal to restructure its ownership with major Japanese tech investor SoftBank, CNBC previously reported.
The banking license comes after Revolut’s financials returned to a stronger footing in 2023. This month, the company reported 2023 pre-tax profit of £438 million ($545 million), swinging to the black from a pre-tax loss of £25.4 million in 2022. Group revenues rose by 95% to £1.8 billion, up from £920 million in 2022.
— CNBC’s Ryan Browne contributed to this report