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Revolut has secured a UK banking licence, ending a greater than three-year tussle with regulators and delivering a lift to the fintech’s growth plans in its residence market.

The London-based firm, which first utilized for the licence in early 2021, stated on Thursday it had obtained the allow from the Prudential Regulation Authority.

The appliance bumped into a number of issues, together with a warning from auditors that they may not absolutely confirm income figures within the group’s 2021 accounts.

Revolut already has a European banking licence from authorities in Lithuania and was granted one in Mexico this 12 months however its prospects have hinged on securing one within the UK.

The PRA’s approval will enable the fintech to widen the services it could actually supply in its largest market, and might be seen as a vote of confidence within the firm that may enhance its probabilities of changing into regulated as a financial institution in different key markets such because the US.

“We’re extremely proud to achieve this essential milestone within the journey of the corporate and we are going to guarantee we ship on making Revolut the financial institution of alternative for UK clients,” stated chief govt Nik Storonsky.

Francesca Carlesi, who joined Revolut on the finish of final 12 months as chief govt of its UK entity, stated the licence was “a major step ahead for Revolut and for our clients”.

Revolut stated it had obtained the licence with restrictions, a standing the fintech stated was widespread for brand spanking new lenders and that will enable it to construct out its UK banking operations earlier than launching them.

Revolut has about 9mn clients within the UK, the place it was based in 2015, and greater than 45mn globally.

Turning into a completely fledged financial institution will enable Revolut, which till now has been working a non-bank “e-money” funds firm within the UK, to supply new merchandise, together with mortgages. Revolut clients may also be included within the Monetary Companies Compensation Scheme, giving them deposit safety of as much as £85,000.

The corporate, which was final valued at $33bn in a 2021 fundraising spherical, is in talks to promote about $500mn value of shares in a deal that will worth it at about $40bn. An aggressive abroad growth has made it far greater than different lenders to which the PRA has handed a UK licence in recent times.

In line with steerage from UK regulators, banking licences are sometimes awarded inside 12 months of an software however Revolut confronted a number of hurdles and tense negotiations because it labored in the direction of approval.

Regulators waited to see a clear audit of Revolut’s full-year accounts after auditor BDO stated final 12 months that the design of the fintech’s IT system meant there was a threat that the majority of its 2021 income had been “materially misstated” in a delayed earnings report.

The Financial institution of England additionally demanded that Revolut simplify its share construction as a way to be regulated as a financial institution, prompting a dispute with Japanese investor SoftBank that was finally resolved.

The beginning-up in 2020 introduced in Metropolis veteran Martin Gilbert as chair to assist handle its relationship with regulators. Final 12 months it misplaced the top of the UK entity that utilized for the licence and its chief monetary officer.

The PRA declined to remark.