UK markets closed
  • FTSE 100

    7,234.03
    +26.32 (+0.37%)
     
  • FTSE 250

    22,984.24
    +123.85 (+0.54%)
     
  • AIM

    1,229.10
    +4.02 (+0.33%)
     
  • GBP/EUR

    1.1848
    +0.0063 (+0.53%)
     
  • GBP/USD

    1.3751
    +0.0074 (+0.54%)
     
  • BTC-GBP

    44,189.32
    -1,007.82 (-2.23%)
     
  • CMC Crypto 200

    1,464.06
    +57.32 (+4.07%)
     
  • S&P 500

    4,471.37
    +33.11 (+0.75%)
     
  • DOW

    35,294.76
    +382.20 (+1.09%)
     
  • CRUDE OIL

    82.66
    +1.35 (+1.66%)
     
  • GOLD FUTURES

    1,768.10
    -29.80 (-1.66%)
     
  • NIKKEI 225

    29,068.63
    +517.70 (+1.81%)
     
  • HANG SENG

    25,330.96
    +368.37 (+1.48%)
     
  • DAX

    15,587.36
    +124.64 (+0.81%)
     
  • CAC 40

    6,727.52
    +42.31 (+0.63%)
     

Revolut applies to become a UK bank

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·Senior City Correspondent, Yahoo Finance UK
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Revolut's payment card. Photo: Revolut
Revolut's payment card. Photo: Revolut

Buzzy fintech Revolut has officially applied to become a UK bank.

Revolut said on Monday it had lodged paperwork with the UK’s Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to apply for a banking licence.

Founded in 2015, Revolut began life as a foreign exchange app tied to a payment card. Today, it offer a wide range of financial services — everything from crypto and stock investments to business accounts.

The company holds client cash under a so-called “e-money” licence. A full banking licence would allow it to offer things like overdraft lending and loans. 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).

READ MORE: Revolut's losses jump to £100m as business surges

“A UK banking licence 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.

Storonsky has said in the past that Revolut did not need a banking licence and the regulation would slow the company down. The push to secure a banking licence comes as Revolut and fintechs like it look for new revenue streams. A significant percentage of Revolut’s income comes from small fees charged on card transactions, which have declined during the pandemic.

“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,” Storonsky said. “Becoming a fully licensed bank in the UK is a central pillar of that ambition.”

READ MORE: Atom CEO on banking during a pandemic and UK property 'bubble'

Revolut already has a banking licence in Lithuania, which is secured in 2018. Brexit means the company cannot “passport” this licence to the UK.

Richard Holmes, Standard Chartered’s (STAN.L) former European chief executive, will head up Revolut’s banking plans. Holmes joined the company last October.

Revolut has over 13m customers around the world and was valued at $5.5bn in a funding deal last July.

Watch: What is the budget deficit and why does it matter?

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting