Digital banking challenger, Revolut, has filed an application for a European banking license following mounting customer interest and funding.
Emulating the journey of Monzo bank, Revolut is aiming to put the license to its name with the intention of providing its customers with credit and deposit services.
Also among the company’s ambitions is a plan to set up a payment processor of its own, a means by which transactions can be handled from channels including debit and credit cards. The license will also provide Revolut with the power to protect the funds of its customers.
The application for a European license is also driven by the Brexit decision, with Revolut aiming to gain the ability offer its services to customers despite the severance.
Nikolay Storonsky, CEO, Revolut, says: “We delayed applying for a banking licence because we wanted to focus all of our resources on product innovation from day one. Even without a banking licence, we have attracted over 950,000 users across Europe, many of whom consider Revolut as their primary current account and spending card.”
In addition to drawing in a substantial customer base, the digital challenger has also impressed investors, raking in a figure in the region of $90 million.
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“With our European banking license, Revolut will offer enhanced consumer protection through the European Deposit Protection Scheme and will offer interest bearing deposit and credit products. We’re building out a mobile-first, global financial platform to serve the needs of our unique international customers for the 21st century,” Storonsky said.
Monzo is a beacon for Revolut to follow, having gained its full banking license this year, and only recently amassing another £71 million in its latest funding round. Monzo is nearing its target of launching current accounts, a goal it is pursuing that will stem the losses caused by its prepaid service.