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Home Challanger banks Challenger bank Revolut applied for UK banking license

Challenger bank Revolut applied for UK banking license

Revolut has submitted an application for a banking license to the U.K. Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

The challenger wants more clients to deposit their salaries and switch over to Revolut as their main bank account provider.

Read also: Starling Bank’s online banking service is the most secure one

However, so far the company holds client cash only under a so-called “e-money” license.

With a full banking license, the challenger would be also allowed to offer overdraft lending and loans.

With regards to secured deposits, Revolut’s customers would also be covered by the Financial Services Compensation Scheme (FSCS), which provides government protection on deposits of up to £85,000 ($114,700).

Revolut was granted a European Union banking license in Lithuania in December 2018 and has begun operations in central Europe.

“A UK banking license allows us to provide the essential financial products UK customers expect from their everyday primary bank account, such as loans, credit cards, overdrafts and deposit accounts, coupled with the additional trust and security that is offered through FSCS protection.” chief executive Nikolay Storonsky said in a statement.

“We want to be the best in class for customer experience, value and capabilities, and offering full bank accounts allows us to do just that. In the future, we want to offer many more innovative products to our UK customers and we are excited to continue driving innovation and competition in the banking industry. Becoming a fully licensed bank in the UK is a central pillar of that ambition,” he added.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

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