Revolut CEO Nikolay Storonsky
The fintech pioneer has applied for a European Banking Licence as it pursues its vision of building the first global banking app.
Revolut expects the banking licence to be in place by the first half of 2018 and will immediately begin offering deposit and credit services in selected markets; including overdrafts, personal loans and term deposits.
The banking licence will also enable Revolut to protect customers funds up to €100,000 under the European Deposit Protection Scheme. This will allow customers to confidently carry higher balances and take advantage of attractive deposit interest rates across multiple currencies.
Revolut has also appointed three non-executive directors with a combined total of 85 years experience in global banking to help with prudential oversight and governance as Revolut begins to rapidly expand its offering.
Nikolay Storonsky, founder and CEO, said: “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.
“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.”
In just two years, Revolut has signed up over 900,000 users across Europe and processed 42 million transactions with a total volume transaction of US$6B to date.
The firm has also raised a total of US$90m from some of the most notable investors including Index Ventures and Ribbit Capital.