Linklaters Advised Revolut In Securing UK Banking Licence
Linklaters Advised Revolut In Securing UK Banking Licence
Linklaters has successfully advised fintech company Revolut on obtaining its UK banking licence, three years after the initial application.
Revolut faced a complex licensing process, complicated by internal accounting issues, as reported by Reuters. The fintech had postponed releasing its full-year accounts twice in recent years, and its auditor had expressed an inability to independently verify all revenues in Revolut’s 2021 accounts.
The Prudential Regulation Authority (PRA), the UK's banking regulator, granted Revolut authorisation with restrictions, a common practice for new banks. This restricted or ‘mobilisation’ phase will allow Revolut to invest in necessary staff and infrastructure before officially launching as a bank. During this 12-month period, banks must demonstrate their readiness to be fully operational and address any issues identified by the PRA.
Revolut, founded in 2015 by Nik Storonsky, already serves over nine million customers in the UK and 45 million globally, without physical branches. Prior to obtaining the banking licence, Revolut operated as an e-money institution in the UK, enabling it to offer bank accounts and other payment services, but not loans.
Revolut joins a select group of branchless challenger banks, including Starling Bank and Monzo, that have secured a banking licence from the PRA.
The Linklaters team advising Revolut included Partners Edward Chan, Lisa Chang, Martyn Hopper, and Elizabeth Dowd, along with Managing Associates Bobby Butcher and Elli Karaindrou (Banking); Sophie Walden and Joseph Richmond (Financial Regulation); and Poppy Burke-Moore (Corporate). They were further supported by Banking Associate Max Dyck and Financial Regulation Associates Elliot Jack and Emily Domingo.
Tom Hambrett, Revolut Group’s general counsel, commented, “As our bank operations enter this next phase in a core market for Revolut, we are very grateful to the team at Linklaters for their outstanding advice and support throughout the process. This marks a major milestone for our customers in the UK, and we will continue to work relentlessly to offer the best products and services to improve the financial lives of everyone who uses Revolut.”
