Revolut gets long-delayed banking licence after Reeves row

Core Viewpoint - Revolut has received a full UK banking licence after a lengthy approval process, allowing it to operate as a regulated bank in Britain for the first time, which is expected to enhance its growth and service offerings [1][10]. Group 1: Licensing Process - The Bank of England's Prudential Regulation Authority has lifted restrictions on Revolut's probationary licence, enabling the company to launch as a regulated bank [1]. - Revolut first applied for a banking licence in 2021, but the approval process was prolonged due to concerns regarding the company's financial accounting [2][4]. - A meeting between Revolut and City regulators, brokered by Rachel Reeves, was blocked by Andrew Bailey, the Governor of the Bank of England, to avoid perceived interference in the licensing process [3][6]. Group 2: Company Impact - The newly granted licence will allow Revolut to offer loans and ensure customer deposits are protected under the Government's Financial Services Compensation Scheme [2]. - Revolut currently has 13 million customers in Britain and is recognized as the country's most valuable start-up, with the UK licence likely serving as a foundation for future applications in other countries [7]. - The company plans to start offering licensed current accounts to customers shortly, transitioning from its previous electronic money institution permissions [8]. Group 3: Strategic Importance - Nikolay Storonsky, the CEO of Revolut, emphasized that the licence represents a significant milestone for the company and is central to its growth strategy [9][10]. - The UK market is identified as a home market for Revolut, and the company aims to introduce a full suite of banking services to its UK customers as part of its mission to build a global bank [10].