The U.K.'s Prudential Regulation Authority , which is responsible for oversight on the country's banking sector, issued a banking license with restrictions to Revolut, the company said.
Revolut now has time to build up its U.K. banking infrastructure and operations ahead of officially launching. 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.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.
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.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 , swinging to the black from a pre-tax loss of £25.4 million in 2022.