Fintech firm Revolut applies for banking licence to expand deposit and credit offer

Fintech company Revolut has this morning (November 8) announced its application for a European Banking Licence.

The London-based firm confirmed it has started building an in-house payment processor in its mission to create the world’s first global banking app.

Once Revolut has the banking licence, forecast for the first half of 2018, the firm said it will offer deposit and credit services such as overdrafts, personal loans and term deposits in selected markets.

The banking licence will allow Revolut to protect customers’ funds up to €100k under the European Deposit Protection Scheme.

The firm said it has worked in recent months to build a strong relationship with the Bank of Lithuania, a member of the European System of Central Banks, to ensure robust capital and liquidity management ahead of its banking licence application.

Nikolay Storonsky, Revolut’s founder and CEO, commented: “We delayed applying for a banking licence because we wanted to focus all of our resources on product innovation from day one.

“Even without a banking licence, we have attracted over 950k users across Europe, many of whom consider Revolut as their primary current account and spending card.”

He continued: “With our European banking license, Revolut will offer enhanced consumer protection through the European Deposit Protection Scheme and will offer interest bearing deposit and credit products. We’re building out a mobile-first, global financial platform to serve the needs of our unique international customers for the 21st Century.”