Revolut Applies For UK Banking License to Expand Financial Products

Revolut banking license will allow Europe’s largest fintech startup to expand its range of services for clients in the UK.

January 12, 2020 | AtoZ Markets Revolut, Europe’s largest and most expensive fintech startup and positioning itself as a next-generation financial platform, has applied for a banking license in the UK.

Thus, the company intends to expand its scope of activities and provide customers with traditional banking services to customers.

Revolut UK banking license will fuel expansion beyond its fintech roots

Revolut UK banking license will allow the company to offer overdrafts, loans and escrow accounts, Bloomberg reported, citing a statement from the company. In addition, she will be insured under the Financial Services Compensation Program, which protects customer deposits of £85,000 ($114,700) or below if the business goes down.

A wide range of services is now available to Revolut clients, including debit cards for cross-border transactions without a fee, foreign currency transfers, budgeting tools, and cryptocurrency trading. Last year, the company was valued at $5.5 billion in a closed funding round.

Revolut is already licensed to provide e-money services in the UK, which allows the company to process transactions and online payments. In 2018, the company obtained a European banking license in Lithuania, which it uses to provide banking services in Central Europe.

Revolut has also applied for a banking license in the United States. It will enable Revolut to provide banking services to customers in the US.

Neobank bets on cryptocurrencies

Revolut has amassed its fortune by trading and investing in cryptocurrencies. Today the company provides access to more than 30 cryptocurrencies, including BTC, ETH, Stellar, and others. Clients of the service can exchange cryptos for fiat money, sell and buy cryptocurrencies, exchange them for gold and other assets.

Revolut also became one of the few who did not give up on XRP token trading after the news of the SEC lawsuit against Ripple. According to the official announcement, Revolut will support XRP as long as listed by exchange partners. Revolut stressed that the situation around XRP is heating up, driving up the volatility of the asset.

Meanwhile, the company is also preparing to defend its interests in court, as a former employee filed for Neobank in court due to illegal coercion to dismiss. According to the FT, citing Revolut employees, the company has promised monthly bonuses to new bilingual employees who can help serve its multinational customer base. However, the bonuses were never paid.

It is reported that the lawsuit was originally planned for consideration in the Krakow court in early 2020, but the case was postponed indefinitely due to the covid-19 pandemic.

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