The acquisition of a banking license in the UK could open up new revenue sources for Revolut, allowing the company to generate interest income at a time when interest rates are at their highest levels in several years.
European fintech giants Reverse has announced the appointment of former Barclays executive Francesca Carlesi as its new UK CEO, signaling a significant step in the company’s ongoing efforts to boost its local operations through a licensing effort.
According to reportsCarlesi, who brings a wealth of experience to her roles Deutsche Bank AG (ETR: DBK) and CEO of digital mortgage lender Molo Finance, will take charge of Revolut’s UK division, which will oversee Revolut’s banking arm, once it receives a banking license.
Revolut and banking licensing ambitions
The appointment comes at a critical juncture for Revolut as it desperately awaits the coveted British banking license. Revolut has been competing for a UK banking license since its application in 2021.
However, the process has been marked by delays and challenges, with negotiations ongoing between the company and regulatory bodies including the Bank of England (BoE) and the Financial Conduct Authority (FCA).
Barriers include issues related to the firm’s internal work culture, accounting practices, and complex share structures. One notable source of concern is the late filing of its accounts by Revolut earlier this year. This oversight drew criticism and raised concerns about the company’s preparedness to become a fully licensed bank. Revolut has responded by emphasizing its commitment to strengthening internal controls and addressing these issues.
While a Revolut spokesperson declined to comment on the current status of the banking license application, he stressed that Francesca Carlesi’s appointment was not directly linked to the application process.
Benefits of Banking License to Revolut
The acquisition of a banking license in the UK could open up new revenue sources for Revolut, allowing the company to generate interest income at a time when interest rates are at their highest levels in several years.
This regulatory milestone will provide the company with the ability to offer a wide range of financial services including loan products such as mortgages, personal loans and credit cards. Additionally, it will also enable Revolut to enhance its value proposition by providing insurance on deposits up to £85,000.
As one of the leading fintech firms featured in CNBC and Statista’s list of Top 200 Global Fintech Companies, Revolut is set to make a substantial impact on the financial services landscape after securing its coveted banking license.
Revolut currently has around eight million customers in the United Kingdom. With Francesca Carlesi at the helm of Revolut’s UK operations, the company is set for an exciting chapter as it continues to expand its offerings and strengthen its presence in the competitive world of fintech.
For now, the fintech community is anxiously awaiting the outcome of the Revolut licensing application, which could shape the future of banking and financial services in the United Kingdom.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves writing about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain media and sites.
More Read
Bitcoin Crypto Related Post
