Fintech startup Revolut applies for European banking license

Financial technology (fintech) start-up Revolut is actually seeking to obtain a European banking license, in addition to aims to expand its app-based bank to completely new markets.

The London, U.K.-based firm is actually currently a financial services firm although is actually hoping to obtain a formal banking license from the region so This kind of can offer more to its customers. Once licensed under European rules, This kind of would certainly be able to provide deposit in addition to credit services, including overdrafts, personal loans in addition to deposits held at a fixed term. Customers would certainly also be able to deposit savings of up to 100,000 euros ($115,765), under EU protections.

Launched in 2015, Revolut’s app currently allows customers to open a current account in 60 seconds, in addition to includes a pre-paid contactless MasterCard debit card, currency exchange in addition to a peer-to-peer payments service.

Chief Executive in addition to co-founder Nikolay Storonsky explained that will the push to become a bank was part of his fintech firm’s ambition to expand in Europe.

“Revolut is actually aggressively expanding its product range in addition to geographic areas of operation. As a global financial services institution, we’ve accepted that will we operate in a highly regulated environment where consumer protection in addition to trust are paramount,” he told CNBC in an email Monday.

“As such, we’re embracing the higher regulatory in addition to reporting burden associated with running a bank, as an inevitable consequence of building trust in our brand. We know we’ll be held to a very high standard of service in addition to are prepared to demonstrate our ability to meet that will challenge.”

The firm is actually one of many challenger banks that will are taking aim at the customer base of more established lenders. As incoming European rules force banks to open up their customer data to third parties, fintech start-ups are hoping to take advantage.

several challengers have been set up across Europe, including Britain’s Starling Bank in addition to Germany’s N26. Both Starling in addition to N26 have already secured banking licenses.

Asked how the firm differentiated via its fintech competitors, Storonsky said: “We’ll continue to innovate in addition to offer great products to our users. We’ll also have a higher level of regulatory oversight which we believe will build trust in our brand. Sometimes the best way to disrupt an industry is actually via within, so keep watching This kind of space.”

The business said This kind of had been in talks with Lithuania’s central bank to prepare ahead of its EU license application.

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