Revolut’s UK bank launch a significant step towards achieving US ambitions
Neil Pickles, partner and head of banking at RSM UK, comments on Revolt launching its UK bank:
“This represents a significant milestone for one of Europe’s most valuable fintechs. The launch will mean Revolut transitions from an e-money institution to a fully regulated bank, providing its customers with the services they want and need. The move signifies that it has eased the Prudential Regulation Authority’s concerns around its risk management, compliance and technology controls.
“For the UK market, Revolut’s authorisation brings a well-known, technology led challenger into direct competition with established banks. This is likely to intensify pricing pressure, accelerate digital innovation and raise expectations around customer experience. At the same time, Revolut’s journey signals a shift to more stringent regulatory oversight across the neobank sector as the market matures.
“This latest development will no doubt aid Revolut’s renewed push for a US banking licence. It almost certainly strengthens its positioning with US regulators and enables it to continue to fulfil its ambition of establishing a global tech-based banking platform.”