Revolut gets UK banking licence after three-year wait

Having a banking licence allows the company to hold account holders’ deposits but with restrictions, which will be decided by the regulator that oversees the banking industry

Revolut received its UK banking licence three years after its application, bringing it one step closer to its objective to expand into mortgage lending.

In its annual results for 2023, the company said the materiality of its climate risk might change as it grew its lending book, “in particular potentially offering residential mortgages”.

It also said there were a range of other core banking features in its product roadmap including mortgages and refinancing loans.

Having a banking licence allows the company to hold account holders’ deposits but with restrictions, which will be decided by the regulator that oversees the banking industry.

It therefore provides the chance for the global fintech firm to move into the loan and mortgage market and compete with traditional high street providers.

In business terms, the firm is now in the “mobilisation stage”, which presents Revolut with time to build up its UK operations before officially launching its new venture.

Current customers have been told that “nothing changes” in terms of their accounts and they can continue using their e-money account as normal.

At present, the company offers a range of accounts, including a free standard plan to customers and paid options for premium customers, which rise to £14.99 per month. Monthly fees for Revolut accounts rose at the end of 2023 as part of the first price hike since 2018.

The various paid options come with a number of digital subscriptions including Deliveroo, NordVPN and dating app Tinder.

It has become a popular account to have for travelling abroad and has amassed nine million UK customers and more than 45 million around the world.

This is largely thanks to its global travel insurance on offer with a premium account and discounted international bank transfers.