Nikolay Storonsky, Revolut’s CEO and founder, projects a positive outlook amid ongoing approval proceedings for the firm’s UK banking license. Holding this license would significantly bolster Revolut’s offerings, potentially including traditional loans and credit card services, taking its operations beyond the current spectrum. Despite regulatory scrutiny and setbacks, Storonsky remains unfazed, underlining Revolut’s compliance with top-tier regulatory norms and readiness to address arising issues.
The fintech heavyweight stays committed to its principal objective: creating a highly digital, borderless financial super app. Revolut has demonstrated strong fiscal performance recently with pre-tax profits reaching $545 million in 2023. This surge is primarily due to augmented user engagement and diverse income channels.
The finance app’s user count has ballooned to over 20 million across the globe, boosting revenue through transaction fees, premium subscriptions, and escalated use of cryptocurrency features. Key partnerships with international businesses have further facilitated their growth. Revolut has proven its robustness and innovation in the erratic economic landscape, setting a firm footing in the financial and tech sectors.
According to Storonsky, the banking license process delay can be ascribed to their large-scale operations which entail more stringent regulatory reviews. Their extensive networks and transactions’ intricacies call for a more in-depth examination, subsequently prolonging the process.
Revolut’s hopeful journey towards UK banking license
The international scope of their business necessitates additional compliance layers. Notwithstanding these hurdles, Storonsky holds onto his optimism about procuring the banking license and contemplates disrupting the conventional banking systems.
In the UK, smaller-scale financial establishments commonly earn their approvals faster because of their simpler structures. Storonsky pointed out that these establishments enjoy leniency, making their integration process smoother. However, Storonsky maintains hope that despite these challenges, Revolut’s banking license will be approved, enabling them to compete in the wider financial market.
Presently functioning as a licensed electronic money institution, Revolut is restricted from offering services like credit cards, personal loans, and mortgages. However, it still provides an assortment of financial services like international money transfers, currency exchange, and stock purchase. If approved, the banking license would substantially broaden these services and potentially introduce new ones, thus promoting Revolut to a fully licensed bank status.
Storonsky exudes optimism about obtaining the banking license, given there have been no significant concerns raised by regulatory bodies about Revolut’s operations. He affirms that the application process is advancing smoothly, with minor issues promptly addressed. The lack of objections or concerns from regulatory entities further solidifies his confidence. Storonsky is hopeful of a positive outcome, and remains unwavering in his dedication to steer through the regulatory landscape to attain the much-desired banking license.
