Financial technology firm Revolut has obtained a UK banking license with certain restrictions, concluding a three-year wait for authorization that will allow it to compete more directly with Britain’s largest banks. This achievement marks a significant milestone for Revolut, one of several financial services apps, known as fintechs, that have emerged in Britain over the past decade, providing services without physical branches.

The license brings London-based Revolut, which operates globally and serves over nine million UK customers, closer to obtaining the same UK permissions as the traditional banks it aims to challenge. The company indicated that it has now entered a “mobilization” phase of its UK operations, enabling them to finalize the development of its UK banking services before launching in the market.

During this phase, new banks can secure investments, recruit staff, and enhance IT systems, although they are restricted in the total amount of deposits they can accept, according to the Prudential Regulation Authority, Britain’s banking regulator.

During the 12-month mobilization phase, new banks are required to prove they will be fully operational and resolve any additional issues identified by the regulator before they can commence full trading. Obtaining the banking license marks a significant advancement in Revolut’s progression towards an eventual stock market listing, which their executives have expressed interest in pursuing.

Founded in 2015 by Nik Storonsky, Revolut has experienced rapid growth by providing customers with payment services, loans in certain markets, and the ability to trade stocks and cryptocurrencies.

Author – Vishal Jagasia, Senior Research Analyst at Quadrant Knowledge Solutions