đ„đ„đ„ #Revolut Clears Final Hurdle for UK Banking Operations after 3 Years of Efforts
Revolut Secures UK Banking License After Three-Year Wait
- Revolut has obtained its UK banking license from the Prudential Regulation Authority (PRA) after a three-year application process. This license, initially with restrictions, allows Revolut to gradually build its banking operations.
CEO's Remarks and Regulatory Approval
- CEO Nik Storonsky expressed pride in this milestone, aiming to make Revolut the preferred bank for UK customers. The approval follows Revolut overcoming regulatory challenges, including financial reporting issues, with a recent unqualified audit opinion from BDO.
Expansion and Market Presence
- With the UK license, Revolut plans to expand its offerings in its largest market, complementing its existing European banking license from Lithuania. Revolut has around 9 million UK customers and over 45 million globally.
Financial Growth and Workforce Expansion
- Revolut, valued at $45 billion, reported strong 2023 financial results with pre-tax profits of ÂŁ344 million, up from ÂŁ6 million in 2022, and revenues nearly doubling to ÂŁ1.8 billion. The company added over 2,000 employees in 2023, totaling over 8,000.
Future Plans and Valuation
- During the initial "mobilization" phase, Revolut will be restricted to holding no more than ÂŁ50,000 in total customer deposits, working closely with regulators for up to 12 months. Reports indicate Revolut is nearing a deal to sell $500 million worth of employee shares, potentially valuing the company at $45 billion.
Conclusion
The UK banking license is a pivotal achievement for Revolut, enabling it to expand its operations and solidify its position in the global fintech industry. With strong financial growth and a growing customer base, Revolut is poised for continued success.
Source - financemagnates.com