Revolut chief hopes to obtain UK banking license by early 2022
Nik Storonsky, managing director of London-based digital banking app Revolut, said he hopes to obtain a UK banking license in early 2022, warning that liquidity remains the biggest hurdle for companies listed in the Grande -Brittany.
“We are getting closer, especially with the UK banking license,” Storonsky said at the FT’s Global Banking Summit. “And we’re close to submitting our full US banking license application, hopefully in the first quarter.”
Other competing banks had to stop their efforts to break into the US market. In October, Monzo withdrew his request after regulators said it was unlikely to be approved.
Storonsky said acquiring a banking license was extremely important for Revolut in order to build consumer confidence. “A lot of consumers trust banks rather than fintechs, so the UK and US banking license will increase confidence and business metrics.”
Revolut would be one of the most valuable companies to ever join the London Stock Exchange if it chose to follow money transfer company Wise into the UK market. In July, an $ 800 million fundraiser earned Revolut a valuation of $ 33 billion, making it the largest private tech company in British history.
Storonsky said new rules had made UK public markets more attractive to businesses, but the lack of liquidity remained a downside. “Obviously, if a stock market in the US is 100 times bigger than in the UK, that could be the main reason many companies choose to list in the US.”
CEO said Revolut has weathered the pandemic: As revenue fell 40% in March and April 2020, the company significantly outperformed its pre-Covid performance in terms of revenue and margin growth gross, and launched new activities.
âAt first we all thought it was scary, but overall it was very positive for the company,â he said.
For the latest fintech news and opinions from FT’s correspondent network around the world, sign up for our weekly newsletter #fintechFT
He also rejected attempts by JPMorgan and Goldman Sachs to compete for younger customers by offering more digital products. âThey are not even in the top 50 suppliers,â he said.
Storonosky said he has witnessed a trend of disruption as “some traditional banks are getting faster,” but said they were “still not innovative enough” and had “cut back” on their offerings.
The neobank was fortunate to enter crypto products in 2017, ahead of most of its competitors, he said. âNow it’s very popular. We will continue to invest [in crypto] because it means that the more income and gross profit the company makes, the more it makes sense to invest and deepen the product.
Comments are closed.