Revolut has been awarded a UK banking licence after a three-year wait.  

The UK-based digital lender, which has 45 million customers in 38 countries, has been handed ‘authorisation with restrictions’ status, by the Bank of England’s Prudential Regulation Authority.  

A UK licence permits the bank to hold customer deposits, allowing it to develop new income streams.  

The business said it will target offering mortgages as a “core banking feature” as part of its “product roadmap,” in its annual report earlier this month.  

The fintech firm posted a £438m profit in 2023, following a £25m loss a year ago. Revenues jumped 95% to £1.8bn over the same period.  

The lender first lodged its application for a UK banking licence in 2021.   

Over that time it has had to address a series of accounting and reputational concerns, after EU regulatory breaches, questions over its corporate culture and the late filing of its accounts.  

Revolut chief executive Nik Storonsky says the licence is an “important milestone in the journey of the company”.  

The bank’s UK chief executive is Francesca Carlesi, the co-founder of digital mortgage lender Molo, who stepped down from that business in October 2023.   

Revolut’s Carlesi adds: “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.”