Switch off the editor’s digest free of charge
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
Revolut has not yet received a green light from the British financial supervisory authorities to offer the 11 million customers in Great Britain consumer credit services and marks the latest hurdle for The 45 billion USD Fintech Become a full-service UK bank.
After applying for a consumer credit license last year, the group still has the approval of the Prudial Regulation Authority and the Financial Conduct Authority, which would enable credit cards and other services in Great Britain, according to the persons familiar with the matter.
The consumer credit license is separated from Revoluts British banking licenseWhat it secured last year with restrictions from the PRA. However, the restrictions limit that the banking unit of revolut of deposits may accept a tiny total of £ 50,000.
The loan application shows that Revolut is still waiting for several regulatory authorizations to become a full lender in Great Britain.
The company has already offered consumer credit services in several EU markets, including credit cards and the possibility that customers advise in Ireland, Poland and Lithuania. It is planned to start similar services in Great Britain, but it has probably assumed that this will probably be delayed until after receiving its complete banking license.
Some elements of consumer credit license would be useful for other products, such as: B. the evaluation of loans that Revolut uses to give fast permits for mortgages in Lithuania in order to soon expand this service to Ireland. Revolut already has a Pan-EU banking license from authorities in Lithuania.
Fintech secured a British banking license in July last July with restrictions after a lengthy – and Sometimes fixed -Re -year -old process with supervisory authorities, which increases the group’s expansion plans on the home market.
The restrictions as long as Revolut in the so-called mobilization level of the PRA existed that the FinTech cannot extend loans to customers in addition to the deposit limit insured by the British guarantee program in the amount of 50,000 GBP. It must meet certain requirements in order to leave mobilization and work as a bank.
The PRA says that the mobilization period “cannot last indefinitely and should not take longer than 12 months”. But there is “there can be some circumstances that go beyond the control of a new bank” in their ability to adhere to the deadline.
Revolut declined to say whether it would leave the mobilization until the 12-month period on July 25th. A person who was familiar with the process said it was “not a legal limit”. Managers believe that the banking license of Revolut would take longer and longer in view of the larger size of the company compared to a typical applicant.
In its most recent annual report, the group announced that their goal was to leave the mobilization “in 2025”.
Revolut said: “Our ambition has always been to make revolution to choose customers in Great Britain and to offer products and services that improve their financial life, including consumer loans.
“As part of this ambition, our British bank has applied for a consumer credit license. We continue to work closely with the British supervisory authorities to build our British bank and look forward to presenting our British customers new products after completing this process.”
The FCA and Pra rejected a comment.
