Banking License News: UK Licence Changes and Its Impact

The UK's banking landscape is undergoing significant changes with the introduction of new license requirements. The Prudential Regulation Authority (PRA) has implemented stricter rules for banks to obtain a license.

This means that banks must now meet more stringent capital and liquidity requirements to ensure their stability and security. The PRA has also increased its scrutiny of banks' governance and risk management practices.

For example, banks must now hold a minimum of 10% of their assets in high-quality liquid assets, and maintain a leverage ratio of at least 3%. These changes aim to prevent another financial crisis like the one in 2008.

The impact of these changes is already being felt, with some banks struggling to meet the new requirements.

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Revolut has recently received a banking license in the UK after a three-year wait. This license allows the company to take customer deposits and issue products like loans and credit cards.

Revolut's CEO, Nik Storonsky, has acknowledged that the company's original "grow fast" ethos was "completely wrong." He believes that a smaller company would have been able to get licenses more easily than one the size of Revolut in 2024.

The company was granted a British banking license in July after three years of waiting. The process took longer than usual, with Revolut facing scrutiny over its size, as well as issues with its financial reporting.

Revolut was valued at $45 billion in a secondary share sale and has 50 million customers globally, 20% of them in its home country. The company is targeting 100 million daily active customers in 100 countries, as well as $100 billion in yearly revenue.

Revolut plans to offer its 650,000 British customers new trading products and features after getting a trading license from the Financial Conduct Authority (FCA).

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Revolut has finally received a banking license in the UK after a three-year wait. This license will allow the company to take customer deposits and issue products like loans and credit cards.

The license was issued by the Prudential Regulation Authority (PRA) with restrictions, giving Revolut time to build up its UK banking infrastructure and operations before officially launching. Revolut first applied for its banking license in 2021 but faced lengthy delays.

Revolut's UK CEO Francesca Carlesi said in a statement, "Today's announcement is a significant step forward for Revolut and for our customers. It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut."

Revolut's financials have returned to a stronger footing in 2023, with a pre-tax profit of £438 million ($545 million) and a 95% rise in group revenues to £1.8 billion.

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Revolut's CEO, Nik Storonsky, has admitted to making a mistake by not pursuing a banking license earlier.

He wanted to be as less regulated as possible, but this turned out to be the completely wrong decision.

Storonsky has learned from this experience and now understands that a smaller company would have been able to get licenses more easily.

This lesson has taught Revolut a valuable one, and the company is now taking a more considered approach to its growth.

Revolut was recently granted a British banking license after three years of waiting, and Storonsky is eager to expand the company's operations.

The company's valuation has increased to $45 billion, and it now has 50 million customers globally.

Revolut's CEO wants the company to double in size, targeting 100 million daily active customers in 100 countries, as well as $100 billion in yearly revenue.

Revolut has finally received its UK banking license after a three-year wait. The license was issued by the UK's Prudential Regulation Authority (PRA) with restrictions, allowing Revolut to build up its UK banking infrastructure and operations before officially launching.

The license is a significant step forward for Revolut, which has faced lengthy delays in obtaining it. Revolut first applied for its banking license in 2021, but it had to resolve issues with its share structure, which was inconsistent with the PRA's rules.

A U.K. banking license will allow Revolut to take customer deposits and issue products like loans and credit cards. This is a major milestone for the company, joining other challenger banks like Monzo and Starling.

Revolut's UK CEO Francesca Carlesi said in a statement that the company will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut. The company has already taken steps to resolve its share structure issue, striking a deal with SoftBank to restructure its ownership.

The banking license comes after Revolut's financials returned to a stronger footing in 2023. The company reported a pre-tax profit of £438 million in 2023, swinging to the black from a pre-tax loss of £25.4 million in 2022.