Revolut has been granted a full UK banking licence, ending a five-year wait due to political interference allegations by Rachel Reeves.
The $75bn (£56bn) fintech startup said the Bank of England’s prudential regulator had lifted restrictions on its trial licence, allowing it to launch as a regulated bank in the UK for the first time.
The license will enable Revolut to make loans and secure customer deposits under the government’s Financial Services Compensation Scheme.
Revolut first applied for a banking license in 2021. Approval took longer than normal, in part because of questions about the company’s financial accounting.
The delay has led to Nicolai Storunsky, its chief executive, criticizing UK regulators.
It emerged Ms. Reeves had sought to broker a meeting between the company and city regulators last year.
The meeting was blocked by Bank of England Governor Andrew Bailey, amid concerns that it could be seen as interfering with the licensing process.
The Treasury said at the time that it supported the bank’s operational independence.
The bank told the Treasury in 2023 that it planned to reject Revolut’s application, before resuming the discussions that led to the licence.
It came after auditors issued a “qualified opinion” on the company’s accounts in 2023, saying it could not confirm part of its earnings. The accounting issues were later reconciled.
The company was allowed to enter the “dynamic” phase, the first step to a full license, in July 2024, but its wait for a full license change has taken longer than any major financial company.
Revolut has 13 million customers in the UK and is the country’s most valuable startup. The UK license is likely to act as a springboard for applications in other countries.
Revolut said it will begin offering licensed current accounts to customers in the coming days before rolling out the broader group in the coming weeks.
It currently offers accounts under the authorization of the Electronic Money Agency, which do not offer the same protection for customers, and cannot be used to finance lending.
Mr Storunsky said the license marked a “significant moment for the company”.
“The launch of our UK bank is a long-term strategic priority for Revolut, and marks a significant moment in our journey,” he said.
He added: “The UK is our home market and our center of growth. We look forward to introducing a full suite of banking services to millions of UK customers.
“This is an important step in our mission to build the world’s first truly international bank.”
(Tags Translation)Rachel Reeves
