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Revolut stated it had secured a UK banking licence, ending a greater than three-year lengthy tussle with regulators and delivering a lift to the fintech’s growth plans in its dwelling market.
The London-based firm stated on Thursday it had acquired the licence from the Prudential Regulation Authority, which first acquired an software from Revolut in early 2021.
The appliance bumped into a number of issues, together with a warning from auditors that they might not totally confirm income figures within the group’s 2021 accounts.
Revolut already has a European banking licence from authorities in Lithuania, however its prospects have hinged on securing one in Britain. A UK banking licence will enable the fintech to widen the services and products it will possibly provide in its greatest market.
“We’re extremely proud to achieve this essential milestone within the journey of the corporate and we are going to guarantee we ship on making Revolut the financial institution of selection for UK prospects,” stated chief government Nik Storonsky.
Revolut stated it had acquired the licence from the PRA with restrictions, a standing the fintech stated would enable it to construct out its UK banking operations earlier than launching them. Revolut has about 9mn prospects within the UK, the place it was based in 2015, and greater than 45mn globally.
The corporate, which was final valued at $33bn in a 2021 fundraising spherical, is in talks to promote about $500mn price of shares in a deal that will worth the corporate at about $40bn.
In keeping with steering from UK regulators, banking licences are sometimes awarded inside 12 months following an software. Revolut has launched into an aggressive abroad growth, making it far greater than different lenders the PRA has handed a UK licence to lately.
The PRA didn’t instantly reply to a request for remark.
Francesca Carlesi, who joined Revolut on the finish of final 12 months as chief government of its UK entity that utilized for the licence, stated: “Right now’s announcement is a major step ahead for Revolut and for our prospects.”
