linas Beliunas: The BIG news 🗞️ After a three-year journey, London-based FinTech giant Revolut has finally secured a UK banking license from the Prudential Regulation Authority (PRA).

This milestone marks a significant step in the company’s evolution and its ability to compete with traditional banks in its home market.

Let’s take a quick look at this and see why it matters.

More on this 👉 We can remember that founded in 2015, Revolut has rapidly grown to serve 45 million customers globally, with 9 million in the UK alone.

The company, which started as an e-money institution offering services like checking accounts and foreign currency exchange, can now expand into traditional banking services such as lending and savings products.

The license comes with initial restrictions, a common practice for new banks in the UK. Revolut will thus enter a mobilization phase, allowing it to build out its banking infrastructure before fully launching these new services. This process could take up to a year and means the following:

Revolut can hold only £50,000 of total customer deposits. Customers will remain with its Financial Conduct Authority-approved e-money entity until a full UK bank launches. But more importantly, this means that the neobank last valued at $33 billion can now offer overdrafts, loans, and savings products to more than 9 million of their consumers in the United Kingdom.