Revolut Breaks Profit Records Amid Banking License Delay

Revolut, one of the leading UK fintech giants, has reported a record profit in 2023 despite the ongoing delay in obtaining a British banking licence. Growing Faster Than Rivals Revolut's pre-tax profit for the year has outpaced the growth of competitors like Monzo and Starling, with approximately nine million and three million customers respectively. However, Revolut's inability to offer lending products such as credit cards, personal loans, and mortgages without a banking licence sets it apart from its rivals. Waiting Game for the Banking Licence Despite filing for a licence in 2021, Revolut is still awaiting approval, with promises of imminent green light remaining unfulfilled. The company is currently classified as an electronic money institution (EMI) in the UK but holds a European banking licence from Lithuania, enabling it to provide personal loans in various European countries. Strategic Moves for Expansion In a bid to continue expanding in Europe, Revolut nearly doubled its advertising and marketing budget to £241 million last year. The fintech giant also recently announced plans to relocate its global headquarters to Canary Wharf, emphasizing its commitment to growth and innovation. Optimistic Outlook for Future Growth Nikolay Storonsky, the CEO of Revolut, expressed confidence in the company's trajectory, stating, "Even as we reached 45 million global retail customers six months into 2024, Revolut remains poised for exponential growth in 2024 and beyond. We are dedicated to obtaining our UK banking licence and expanding the Revolut app to new markets worldwide, redefining the financial services landscape." With a strong focus on strategic expansion and technological innovation, Revolut is set to solidify its position as a key player in the fintech industry.