𝓡𝓪𝓫𝓲𝓪 𝓢𝓪𝓮𝓮𝓭 ⚛’s Post

🚨 Revolut is close to getting an Australian bank licence. Can it crack fortress Australia 🇦🇺 and the ‘big four’? It’s just got a banking licence in the UK which means an Australian licence now looks like a sure thing. Yet even before this inevitable milestone, Revolut is making serious inroads in the local market; it’s signed up 670,00 customers already in Australia and has transaction volumes annualised at an estimated $1bn. “We are going to take it to the banks, we have the incumbents in our sights’ says Matt Baxby, the chief executive of Revolut’s Australian operations which are growing rapidly. Baxby won’t reveal all plans, even on his expectations about when it will get a licence but he says the group aims for best-in-class products. According to Baxby, Revolut in Australia is growing at 100 per cent a year, and that’s with a low public profile and without the government guarantee that comes with a banking licence. Revolut will move quickly to compete in the spots the local banking industry has left wide open. Where will it start? Consumer credit, depot taking, unsecured debt services? What do you think? Source article for more info: https://lnkd.in/dKs3f3b6 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

💷 Revolut has finally got its long-awaited UK banking licence, hurrah! The Prudential Regulation Authority only granted the fintech a licence “with restrictions”, however, meaning it has a long way to go before it becomes a fully-fledged bank, writes Frances Coppola. 🏃♀️ Right now, Revolut is now in the “mobilisation stage”. There are three phases to obtaining a UK banking licence: pre-application, application and mobilisation, the first and last of which are optional. 💡 Prospective banks can proceed straight to an application without prior discussions with the regulators, and regulators can grant them immediate full authorisation on the strength of that application. 💳 But in practice, most wannabe banks go through all three stages.  While Revolut is in the mobilisation stage, the PRA won’t let it accept more than £50,000 of new deposits. ❓ This is a tiny sum: five customers each depositing £10,000 would hit the limit. Clearly, it’s not possible for Revolut to operate as a bank while this limit is in place, though it can continue to operate as a licensed e-money provider. 👀 Read more below https://lnkd.in/epJ7rhHk

Revolut is not a (UK) bank and therefore has issues with lending and deposits. Here is why Revolut needs a banking licence: Chris Skinner explains it well in his blog post: https://lnkd.in/eEnCZ4G5 Is the money safeguarded? Chris pushes back and said NO. This is made clear by many companies in this space, such as N26 who clearly state on their website that “the key difference between an e-money licence and a banking licence is where the customer's money is held, as well as how it is protected. E-money firms must use a partner bank to hold funds, and your money isn't protected by the European Deposit Guarantee Scheme (DGS).” Furthermore, it is crucial to understand that EMIs do NOT offer bank accounts, because they cannot receive deposits in the same way as banks, and that is because they must have deposit guarantees, i.e. customers funds up to €100,000 are not protected under the European Deposit Insurance Scheme. It’s all about trust in the institution to protect your money and, if they lose it, to reimburse you. An EMI, even with safeguarding deposits, does not have that requirement. This is why Revolut wants that banking licence in the UK. They have one in the EU via Lithuania and now in Mexico (https://lnkd.in/e7QWcHJJ) but, with 40 million users and growing rapidly – along with a valuation of more than $25 billion (as of April 15 2024), which is a 45% rise on the year before – the UK banking licence is key to their expansion plans. After all, seven million of their forty million users are UK based. Chris Skinners view: An EMI is not as safe as a bank as, if they were, why does Revolut need a banking licence. A bank guarantees its deposits; an EMI does not or, rather, not in the same way. What do you think? #revolut #neobank #challengerbank #bankingapp #bankingindustry #banking #digitalbanking #fintech #financialtechnology #fintechindustry

Revolut got its banking license. The decline of traditional retail and SME UK banks will accelerate fast from here. Revolut's super app can now be extended with loans, mortgages, deposits, ISAs and lots more financials products. Revolut learned some hard lessons around auditing and regulatory compliance but in the mean time traditional UK banks have not learned how to generate substantial profits beyond traditional banking products in retail and SME. Now Revolut will start driving down margins on traditional products while introducing innovative variations at a breathtaking speed. The small brands will start to consolidate. The large brands will start moving out of retail and afterwards SME banking. Unfortunately for them, Revolut will continue into corporate banking in 5 to 10 years from now. Especially given that the UK license now opens the doors to a US license. #InnovateOrDie https://lnkd.in/emReS8qJ

Revolut receives UK banking licence, but reasons to remain sceptical Read the full article: https://bit.ly/3WQ7zNv Revolut’s ‘restricted’ licence has been granted to an empty subsidiary. The current UK E-Money Institution (EMI) remains the entity serving, owning, and holding all nine million UK clients. Only after full authorisation can Revolut serve UK clients as a bank. The Prudential Regulation Authority (PRA) of the UK has agreed with Revolut to categorise the company as a ‘mobilisation stage’ candidate for a potential fully authorised UK banking licence. Revolut, founded on 1 July 2015, has 45 million users internationally and first applied for the UK banking licence in January 2021. Putting Revolut into mobilisation stage can be perceived as much an insult as an achievement. Nik Storonsky, Revolut; David Gyori, Banking Reports; Financial Conduct Authority; Financial Services Compensation Scheme TAB Global #revolut #ukbankinglicence #fintech #cryptoincome #compliancerequirements #mobilisationstage #emi #prudentialregulationauthority #financialconductauthority #financialservicescompensationscheme #itlegacy #bankinglicence #regulatoryhurdles #cryptoassets #digitalbanking #theasianbanker #tabglobal

After a 3-year journey, London-based fintech giant Revolut last week announced that it has finally obtained its UK banking license from the Prudential Regulation Authority. Revolut has about 9mn customers in the UK, where it was founded in 2015, and more than 45mn globally, with this milestone marking a significant leap for the company's expansion in its home market. What does this agreement entail? ➡️ License granted with restrictions, a status common for new lenders, allowing Revolut to build out UK banking operations ➡️ 9 million UK customers are to benefit from new products, including mortgages ➡️ Customers will now be protected under the Financial Services Compensation Scheme, giving them deposit protection of up to £85,000 This approval is a vote of confidence for Revolut, who already hold banking licenses in Europe (Lithuania) and Mexico, potentially boosting its prospects in other key markets like the US. The company, last valued at $33bn, is currently in talks for a $500mn share sale that could value it at $40bn. Commenting on the news, CEO Nik Storonsky said, "We will ensure we deliver on making Revolut the bank of choice for UK customers." Read more about the new ruling in the Financial Times article below ⬇️ What are your thoughts on Revolut's future in the UK banking sector? #FinTech #Banking #Revolut #UKFinance #FinTechNews #TechNews #BankingRegulation #FinancialServices #TechnologyNews #Innovation https://lnkd.in/euc8GUUu

Revolut profits soar as CEO remains hopeful of UK banking licence. 📈 Revolut has posted a record pre-tax profit of £438m off the back of a 95% surge in revenue as the British fintech’s chief executive remains confident in securing a UK banking licence. The group posted revenue of £1.8bn for the year ended 31 December 2023. The results, released on Tuesday, represent Revolut’s third successive year of profit. Revolut said its growth was partly down to its focus on income diversification. The company has long had the aim to create a ‘super app’ containing every financial service users might need. ➡️ https://lnkd.in/eFXGBuzQ 🔗 #fintech #profits #banking #diversity #financialservices #tax #UKtech

A significant milestone achieved by Revolut with a UK Banking license soon to follow for sure. The decision to grant a banking licence (expected to be weeks away) is one many in the industry will be watching closely and for sure, there will be quite a few sceptics out there but one thing is for certain … Revolut is not standing still. #Banking #Revolut #Digital #FinancialServices #FinTech #DigitalBank #License #Money #CNBC [Read more here: https://lnkd.in/emFHtb7Y]

In case you missed it, Revolut just achieved a huge milestone by finally receiving their UK banking license after a 3-year wait. Here are some points of reflection that have arisen from this occasion: ⚫ With a banking license, Revolut must now adhere to comprehensive risk management standards involving financial health monitoring and rigorous AML standards. ⚫ The bar has been raised for fintech firms as a result of this. There is now more pressure to develop robust risk management strategies that can withstand regulatory scrutiny, whilst safeguarding customer interests. ⚫ It’s also interesting to point out that perhaps there is increasing pressure on traditional banks because of fintech firms such as Revolut. Maybe this will compel the traditional banking sector to modernize its operations, embrace digital transformation, and offer more competitive services. Revolut’s milestone raises intriguing questions about the future of digital banking. As more fintech companies seek banking licenses, we might witness a blurring of lines between traditional banks and fintech firms. So, what will the banking landscape look like in a decade? 🏦 Read more here: https://lnkd.in/dsNs7EA9 #Fintech #Startup #Revolut

Established financial services players really ought to get their acts together. Revolut are hungry and about to eat yet more of their lunch. 9m customers in the UK and counting.... A blessing from the PRA and FCA will no doubt boost credibility and attract yet more younger and tech-savy customers. A continuation of their digital-first approach, slick UX, innovation and an expansion of services will seal the deal. #financialservices #banking #buildingsocieties #fintech