Source: Guardian

It is a milestone for the company, and will help pave the way for an eventual stock market listing, but it may still be some time before it can hold its customers’ deposits.

Tentative approval from the Bank of England means Revolut is in the mobilisation stage, where it will build up its banking operations.

The challenge, in part, was convincing regulators that Revolut had addressed a number of accounting issues and EU regulatory breaches, as well as reputational concerns, including an over-aggressive corporate culture. The UK’s Financial Conduct Authority also reportedly investigated the business in 2016 after a whistleblower claimed it was failing to conduct adequate money-laundering checks or properly flag suspect payments. That investigation was closed in 2017.

The announcement comes just weeks after the company reported record annual profits of £438m for 2023, having made a £25m loss a year earlier. Profits were bolstered by higher interest rates and ambitious expansion plans that increased it user base by 12 million customers last year.

Read full article: https://www.theguardian.com/business/article/2024/jul/25/revolut-receives-uk-banking-licence-after-three-year-wait