Revolut has finally won a UK banking licence, intensifying the neobank threat to traditional finance.
Regulators werereportedlyconcerned about Revoluts accounts, but politicians offered vocal support.
Jeremy Hunt, the former chancellor, called the company a shining example from our world-beating fintech sector.
With the new license, Revolut can push that sector further into mainstream finance.
But first, the company must complete a mobilisation stage, designed for testing systems before a full launch.
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Revolut can then provide overdrafts, loans, and savings products just like traditional banks.
The companys 9 million UK customers will also gain protection on deposits of up to 85,000.
Nik Storonsky, CEO of Revolut, called the license an important milestone in the journey of his firm.
We will ensure we deliver on making Revolut the bank of choice for UK customers, he said.
The license also brings broader legitimacy to British neobanks.
With a $33bn valuation, Revolut is already worthas muchas many traditional banking giants.
The disruptor is nowreportedlynear a new valuation of $45bn, which would push it aboveBarclays and NatWest.
Despite these heady numbers, rival neobanks have been faster to win UK banking licences.
The likes ofMonzo, Starling, and Atom received the approval years ago.
By joining these challengers, Revolut can accelerate its push into mainstream finance.
Britains banking establishment is getting a reshuffle.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
