Revolut secures European banking license
Seb Daly | Web Summit | Getty Images
Nikolay Storonsky, chief executive of Revolut, on stage at the MoneyConf fintech event in Lisbon, Portugal.
U.K. financial technology firm Revolut secured a big victory on Thursday in its quest to shake up European banking.
Revolut announced it was granted a banking license by the European Central Bank (ECB) that it will start to implement next year across key markets including the U.K., France, Germany and Poland.
The license will allow the fintech company to offer services typically provided by traditional banks, including full current accounts, consumer and business lending and overdrafts. Customers will also be able to deposit their salaries directly into Revolut accounts, with up to €100,000 covered under the European Deposit Insurance Scheme.
This is the first banking license Revolut has secured. It will take between three to six months to begin implementing the license across Europe, the company said.
Revolut founder and CEO Nik Storonsky told Imagala.com earlier this week the European banking license will be “one of many,” adding it is a “good feeling” to receive the first one. Storonsky said the firm plans to apply for a U.K. banking license as well.
“If we feel a ‘hard Brexit’ happens, we’ll definitely need to have a license here,” he said.
Revolut is among a growing list of digital banks that have secured banking licenses as fintech start-ups take on incumbents in the financial services sector. The U.K.’s Monzo and Starling have both secured banking licenses in the U.K., while Germany’s N26 received its European license in 2016.