UK fintech Revolut has yet to receive a consumer credit licence, after submitting an application last year.
Citing people familiar with the matter, the Financial Times reports Europe’s most valuable fintech is still waiting for authorisation from the Bank of England’s Prudential Regulation Authority and the Financial Conduct Authority for permission to offer consumer credit services.
A Revolut spokesperson told Sifted: “Our ambition has always been to make Revolut the bank of choice for UK customers, offering products and services that improve their financial lives, including consumer credit. As part of this ambition, our UK bank has applied for a consumer credit licence.”
This is separate from Revolut’s UK banking licence, which it secured last July from the PRA with restrictions after a prolonged three-year process. The UK fintech company is currently in the mobilisation stage of its banking licence, which is expected to last 12 months and restricts deposits at Revolut’s banking unit to £50k.
The consumer credit licence will enable the fintech to offer credit products once Revolut’s UK banking unit is live. Revolut has held a European banking licence since 2021 through its Lithuania entity, which has enabled it to offer credit cards and personal loans in multiple countries, including Ireland, France, Spain and Germany.
The consumer credit licence would also be useful for products such as credit scoring, which Revolut is using to offer quick approvals on its mortgage product in Lithuania.
“We’re continuing to work closely with UK regulators as we build towards launching our UK bank, and look forward to introducing new products to our UK customers once that process is complete,” the spokesperson continued.
Read the orginal article: https://sifted.eu/articles/revolut-consumer-credit-licence/
