Fintech Revolut secures banking greenlight with European licence

London fintech Revolut is preparing to launch banking services after securing a European licence.

Announced today (December 13), the decision means the digital bank will start offering full current accounts, consumer lending and commission-free stock trading from next year.

Revolut plans to initially focus on smaller European countries before passporting the banking licence to larger markets, including the UK, France, Germany and Poland.

Revolut launched three years ago to allow customers to spend and transfer money abroad with the real exchange rate.

The company has since attracted more than three million customers with features including spending overviews, savings and budgeting controls.

In the summer, Revolut announced plans to launch a commission-free stock trading tool for UK and European users after seeing its customer base pass the two million mark.

The new European banking licence, the firm said, will enable customers to deposit their salaries and have up to €100k protected under the European Deposit Insurance Scheme.

Other new services will include overdrafts and personal or business loans.

Nik Storonsky, founder and CEO of Revolut, said: “With the banking licence now secured, commission-free stock trading progressing well and five new international markets at final stages of launch, we are living up to our reputation as the ‘Amazon of banking’.

“Our vision is simple: one app with tens of millions of users, where you can manage every aspect of your financial life with the best value and technology.”

The licence is in place but will take between three and six months to be passported across Europe.

Discussing the firm’s new focus on the lending market, Nik said: “Our vision is that retail and business customers will be able to apply for a loan in just two minutes from within the app, and then have the money in their account almost instantly.

“We’ll remove the bureaucratic process and come in cheaper than traditional lenders.”

Revolut’s expansion plans are not confined to Europe, with launches in the US, Canada, Australia, New Zealand, Singapore and Japan all expected in early 2019.

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