UK fintech company Revolut has reportedly announced that it has been granted a banking license by the European Central Bank (ECB) that would start implementing next year across key markets including France, U.K., Poland, and Germany.
Credible sources claim that the license will enable Revolut to offer services that are specifically provided by traditional banks, which include business and consumer lending, full current accounts, and overdrafts. Apparently, customers will be able to credit their salaries directly into the fintech unicorn’s accounts, with up to €100,000 covered under the European Deposit Insurance Scheme.
Revolut claimed that this is the first banking license they have secured, and it will take them three to six months for them to begin implementing the license all over Europe.
Nik Storonsky, Revolut Founder and CEO was reportedly quoted stating that ECB’s license is the beginning of many that the firm is likely to receive in the years ahead. Obtaining the first one is indeed a great feeling, claimed Storonsky, while further enumerating that the company also plans to apply for a UK banking license, primarily on account of the ambiguity around Brexit.
For the uninitiated, Revolut is one in the growing list of digital banks that has obtained banking licenses in a scenario where fintech startups take on incumbents in the financial services sector. Starling Bank and Monzo have also received banking licenses in the UK, while in 2016, Germany’s N26 secured its European license.
Quoting what Storonsky said further, Revolut aims for a 100 million customer base and the tag of being the ‘best digital bank across the globe’. Storonsky’s plans involve delivering a one-stop-shop for consumers for finance management as well as expanding to the U.S. in the year 2019, not to mention, other geographies such as Singapore, Japan, New Zealand, Canada, and Australia.