The fintech giant has secured a PRA's authorization, allowing it to expand services in its largest market.
It is also reportedly nearing a deal that could value it at $45 billion.
Fintech
giant Revolut has finally obtained its long-awaited UK banking license, marking
a significant turning point for the London-based company after a protracted
three-year application process.
Revolut Finally Wins
Regulatory Nod for UK Banking
The
Prudential Regulation Authority (PRA) granted the license with restrictions, a
common practice for new entrants to the UK banking sector. This status allows
Revolut to build out its banking operations before a full-scale launch gradually.
“We are
incredibly proud to reach this important milestone in the journey of the
company,” commented Revolut's CEO and Co-Founder, Nik Storonsky. “We will
ensure we deliver on making Revolut the bank of choice for UK customers.”
The license
approval comes after Revolut addressed several regulatory hurdles, including
concerns about its financial reporting. The company recently received an
unqualified audit opinion from the UK’s accountancy advice firm BDO, resolving
previous issues related to revenue recognition and IT systems.
With the UK
license secured, Revolut can now expand its product offerings in its largest
market. The company boasts approximately 9 million customers in the UK and over
45 million globally. This development complements Revolut's existing European
banking license, obtained from Lithuanian authorities in 2021.
In preparation for obtaining a license, the company has relocated its headquarters to the central financial district of London, taking advantage of the trend of major banks leaving the area. The fintech giant established its new headquarters in the YY London building located in Canary Wharf.
Valuation of $45 Billion
Industry
analysts view this as a significant boost for Revolut's growth strategy. The
company reported strong financial results for 2023, with pre-tax profits
soaring to £344 million, a substantial increase from £6 million in the previous
year. Revenues nearly doubled to £1.8 billion, buoyed by rising interest rates
and growth in customer subscriptions. Revenues are expected to be even higher in the future, as the company plans to generate $370 million from advertisements alone by 2026.
“In 2023, we took our biggest steps yet on that journey. We accelerated customer growth and increased the adoption of our products across the board, driving a record year for Revolut financially,” Storonsky commented.
Revolut's
workforce has also expanded rapidly, contrary to the broader tech industry
trend of layoffs. The company added over 2,000 employees in 2023, bringing its
total headcount to more than 8,000.
As Revolut
enters the “mobilization” phase of its UK banking operations, it faces an
initial restriction of holding no more than £50,000 in total customer deposits.
This phase typically lasts up to 12 months, during which the company will work
closely with regulators to ensure compliance with all banking standards.
The license
approval coincides with reports of Revolut nearing a deal to sell $500 million
worth of employee shares, potentially valuing the company at $45 billion. If
realized, this would cement Revolut's position as one of the world's most
valuable fintechs. This information has not yet been officially confirmed; however, according to people familiar with the matter, it is a sign that investors are increasingly hopeful about the fintech sector. The Wall Street Journal also speculates the move could open a door for an initial public offering (IPO).
Fintech
giant Revolut has finally obtained its long-awaited UK banking license, marking
a significant turning point for the London-based company after a protracted
three-year application process.
Revolut Finally Wins
Regulatory Nod for UK Banking
The
Prudential Regulation Authority (PRA) granted the license with restrictions, a
common practice for new entrants to the UK banking sector. This status allows
Revolut to build out its banking operations before a full-scale launch gradually.
“We are
incredibly proud to reach this important milestone in the journey of the
company,” commented Revolut's CEO and Co-Founder, Nik Storonsky. “We will
ensure we deliver on making Revolut the bank of choice for UK customers.”
The license
approval comes after Revolut addressed several regulatory hurdles, including
concerns about its financial reporting. The company recently received an
unqualified audit opinion from the UK’s accountancy advice firm BDO, resolving
previous issues related to revenue recognition and IT systems.
With the UK
license secured, Revolut can now expand its product offerings in its largest
market. The company boasts approximately 9 million customers in the UK and over
45 million globally. This development complements Revolut's existing European
banking license, obtained from Lithuanian authorities in 2021.
In preparation for obtaining a license, the company has relocated its headquarters to the central financial district of London, taking advantage of the trend of major banks leaving the area. The fintech giant established its new headquarters in the YY London building located in Canary Wharf.
Valuation of $45 Billion
Industry
analysts view this as a significant boost for Revolut's growth strategy. The
company reported strong financial results for 2023, with pre-tax profits
soaring to £344 million, a substantial increase from £6 million in the previous
year. Revenues nearly doubled to £1.8 billion, buoyed by rising interest rates
and growth in customer subscriptions. Revenues are expected to be even higher in the future, as the company plans to generate $370 million from advertisements alone by 2026.
“In 2023, we took our biggest steps yet on that journey. We accelerated customer growth and increased the adoption of our products across the board, driving a record year for Revolut financially,” Storonsky commented.
Revolut's
workforce has also expanded rapidly, contrary to the broader tech industry
trend of layoffs. The company added over 2,000 employees in 2023, bringing its
total headcount to more than 8,000.
As Revolut
enters the “mobilization” phase of its UK banking operations, it faces an
initial restriction of holding no more than £50,000 in total customer deposits.
This phase typically lasts up to 12 months, during which the company will work
closely with regulators to ensure compliance with all banking standards.
The license
approval coincides with reports of Revolut nearing a deal to sell $500 million
worth of employee shares, potentially valuing the company at $45 billion. If
realized, this would cement Revolut's position as one of the world's most
valuable fintechs. This information has not yet been officially confirmed; however, according to people familiar with the matter, it is a sign that investors are increasingly hopeful about the fintech sector. The Wall Street Journal also speculates the move could open a door for an initial public offering (IPO).
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Ebury Kicks Off Partnership with AS Monaco for Upcoming Ligue 1 Season
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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