FinTelegram recently reported that the Revolut banking license in the UK may or may not be granted. Speculation suggests that regulators might deny Revolut the license. However, the UK government has intervened and facilitated high-level political discussions with Revolut, the UK’s highest-valued fintech as part of its growth strategy.
A banking license requires approval from both the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA).
Revolut has been awaiting approval for its UK banking license for over two years since initially applying.
While regulators have the authority to deny Revolut a license, they may also consider offering a restricted license that imposes limitations on deposits or lending for approximately 12 months.
However, the slow progress of the application process has caused frustration among Revolut‘s executives, including Nik Storonsky, who recently expressed challenges in doing business in the UK due to high taxes and excessive bureaucratic regulation. Storonsky also indicated that if Revolut were to go public, the company would likely choose to list in the US rather than London. This decision would be noteworthy considering Revolut’s status as the UK’s most valuable fintech firm in 2021, with a valuation of $33 billion (£26.5 billion).
Without a banking license, Revolut cannot offer loans in the UK, unlike its competitors Monzo and Starling Bank.