Revolut cards are seen in this illustrated photo taken on March 29, 2024 in Krakow, Poland.
Jakub Bolzycki | Noor Photos | Getty Images
British fintech startup Revolut said on Thursday it had received a restricted banking license from the UK Prudential Regulation Authority, ending a three-year wait.
The London-based company now has time to build out its UK banking infrastructure and operations before a formal launch.
Revolut first applied for a banking license in 2021 but faced long delays.
Revolut said: “Today’s announcement is a significant step forward for Revolut and our customers. As a UK bank, we have a huge responsibility and we will work tirelessly to deliver products and services that improve every The financial lives of people using Revolut.
The UK banking license will allow Revolut to take customer deposits and issue products such as loans and credit cards. It joins a host of other challenger banks, such as Monzo and Starling, aiming to compete with traditional banks such as Barclays.
One of the key issues delaying the acquisition of a banking license is that Revolut’s shareholding structure does not comply with PRA rules. British regulators required the company to convert six classes of its shares into ordinary shares.
Revolut has since resolved the issue and reached a deal with major Japanese tech investors to restructure its ownership Softbank, CNBC previously reported.
Revolut received its banking license after its financial position returned to strength in 2023. For profit.
— CNBC’s Ryan Browne contributed to this report
