Mobile Finance App Revolut Gets European Bank License

Dec 15, 2018 at 11:30 Update Date :Dec 21, 2018 at 11:55 UTC

A London based financial technology startup, Revolut, has finally got its license from the European central bank. The next startup Revolut is planning to launch check and saving accounts, along with business and retail lending.

The company Revolut, on Thursday, announced that the license granted will provide users with a platform to manage their finances activities from a particular place which will be done with the help of venture Revolut Bank. The regulatory approval to Revolut has been granted by the Bank of Lithuania.

Revolut Services to Users

According to the firm, the vision is quite a way off, but, they have decided to build and test the features to be available on the platform. In the coming months, the firm will work with regulators in the field. The services which are to be enabled by the license will be tested next year in Lithuania. Revolut has other major plans like expanding the business to European markets next year.

The Revolut bank is also planning to launch overdrafts, accounts & loans for individuals, direct debits, and other necessary banking services. The current account deposits; around $113,000 would also become under the European Deposit Insurance Scheme, announced by the firm.

The firm Revolut, which was founded in 2015, raised $66 million in a Series B funding round. Around two years after this, in July 2017, they launched a BTC trading service. The firm has grown from offering no-fee pre-paid debit cards for users to traveling internationally to find one that allows users to access services like budgeting tools, crypto wallet, and crypto exchange.

Choosing Lithuania for Business

Revolut is the first fintech startup in London to receive a license from the European central bank. The firm has joined the group of companies who have secured permission to offer any loans and banking accounts to users. Other firms like Klarna Holding AB – Swedish payment company, N26 – German startup, and Adyen NV – Dutch payments also hold a European banking license.

A Revolut spokesman, Chad West, stated that the reasons for choosing Lithuania are, it has over 150,000 users and the regulatory environment of the country is incredibly fintech friendly. He further said that it was also easier for Revolut to get licensed in Lithuania than other jurisdictions of Europe.

Leave a Reply

Please Login to comment
Notify of