🔥🔥🔥 #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 £344 million, up from £6 million in 2022, and revenues nearly doubling to £1.8 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 £50,000 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