FinTech Firm Revolut Obtains European Banking Licensebr>
UK FinTech firm Revolut has obtained a banking license in Lithuania, allowing it to accept deposits and offer retail and business lending across Europe.
Founded in 2015, Revolut is a digital banking alternative that includes a pre-paid debit card (MasterCard), currency exchange, and peer-to-peer payments. It allows customers to change fiat currency into crypto and trade their existing cryptocurrencies for others. Revolut currently has more than 1.5 million customers and completed over 70 million transactions. In April of this year, it raised $250 million at a valuation of $1.7 billion, delivering Unicorn status.
On Dec. 13, Revolut announced that it obtained a license through the Bank of Lithuania and “is leveraging passporting rules to operate in other European countries.” The company said the license will help them provide better access to digital currencies and also offer traditional banking services.
“If you choose to open a full current account with Revolut Bank in the future, any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS),” the company said.
Once operational, the banking license will also allow Revolut users access to overdraft facilities and personal loans, which means users will no longer have to deal with negative balances, automatic top-ups and ‘insufficient funds’ notification.
“The competitive personal loans we plan to offer will help out when your budget can’t cover a bigger purchase when you want to book that long-overdue holiday, or for anything else that requires a small cash injection before your next payday,” the company said.
The new licence will be tested in Lithuania in early 2019, and once the company is happy that everything is running smoothly, they will look to expand into other European markets later in the year.