© Unsplash/Altumcode
The announcement is enough to make its competitors tremble. Revolut takes historic step towards becoming a fully-fledged bank in the UK. The Prudential Regulation Authority (PRA), the ;#8217;British regulatory authority, has just granted the company a banking license “with restrictions”, thus paving the way for a major transformation of the banking landscape beyond -Manche, and elsewhere.
This decision, long awaited by the industry and investors, propels Revolut into a new era of its development. Founded in 2015 by Nik Storonsky and Vlad Yatsenko, the fintech quickly established itself as a key player in the financial sector, shaking up traditional institutions with its innovative and user-centered approach.
Obtaining this license represents much more than a simple administrative formality. It demonstrates Revolut's growing maturity and its ability to meet the strict requirements of UK regulators, particularly in terms of internal controls and risk management. This license is therefore a giant step towards institutional legitimacy in a country which is home to one of the most important financial centers in the world.< /p>
Nik Storonsky, CEO of Revolut, did not hide his satisfaction with this progress. “We are incredibly proud to reach this milestone in the company’s journey”, a- he declared, emphasizing the ambition to make Revolut “the bank of choice for UK customers”. This statement clearly reveals the company's intentions: to establish itself as a bank in its own right, but also to become an undisputed leader in the UK and European market.
The license “with restrictions” places Revolut in a so-called 'mobilization' phase, a common stage for new banks in the UK. This transitional period will allow the company to refine its banking operations before an official market launch. For current customers, nothing will change immediately, but this phase sets the stage for a potentially expanded and strengthened service offering in the future.
< p>With this new license, Revolut therefore fills a three-year-old gap. In Europe, the company already has a banking license, obtained in Lithuania. This prior experience undoubtedly worked in its favor in the process of obtaining the British license, demonstrating its ability to operate in complex and varied regulatory environments.
Dazzling growth
The announcement of this license comes in a context of exceptional growth for Revolut. The recently published figures speak for themselves: turnover almost doubled in 2022, reaching £1.8 billion, and net profit of £344 million. These impressive financial results demonstrate the robustness of Revolut's business model and its appeal to consumers.
The company's customer base is also experiencing a rapid expansion. With 12 million new customers signed on last year, Revolut reached a total of 38 million users by the end of 2022, a figure that has further climbed to 45 million in June 2023. France, Revolut's second largest market in terms of growth and turnover, perfectly illustrates this international dynamic. With nearly 3.5 million customers in France and prospects of reaching 4 million before the end of the year, Revolut demonstrates its ability to adapt and prosper in diversified markets.
Just the beginning
Despite these successes, Revolut faces significant challenges. Obtaining the banking license in the United Kingdom is therefore only the beginning of a new chapter. The company will need to navigate an increasingly complex regulatory environment, while maintaining its pace of innovation and growth. Competition in the neobank and fintech sector is intensifying, with players like N26 also looking to gain market share. Revolut will need to continue to differentiate itself, not only through its innovative features, but also through the quality of its customer service and the robustness of its security systems.
The brand has already announced new products on savings and credit coming in 2024. Among the most anticipated, real estate credit is undeniably at the top. This new license will undoubtedly give the company wings to accelerate on these new products. And facilitate a potential IPO.
- Revolut obtains a banking license “with restrictions” ; in the UK, a major step towards becoming a fully-fledged bank.
- The company shows exceptional growth
- This new license should allow Revolut to accelerate its longer-term projects.
📍 To not miss any news from Presse-citron, follow us on Google News and WhatsApp.< /p>