Crypto-friendly fintech startup Revolut can now offer banking services to its uses in Europe after obtaining the required banking license. According to a report on the technology news website, TechCrunch Revolut is now officially a European bank.
Revolut, which has its headquarters in the United Kingdom, obtained the license through the Bank of Lithuania. The firm will make its banking services available to customers in other European countries thanks to the “passporting rules” that covers countries in the region.
Founded in 2015, Revolut operates as a digital banking alternative that offers retail financial services including pre-paid debit card, currency exchange, peer-to-peer payments, and a cryptocurrency CFDs exchange. These services are set to be expanded following its banking license.
What the Banking License Means for Revolut
Per TechCrunch, Revolut can now furnish its users in Europe with true current accounts and a non-prepaid debit card as opposed to the prepaid cards. Access to the European Deposit Insurance Scheme will mean that the firm can cover deposits of up to €100,000 (or $113,500). In addition, Revolut will be able to generate revenue by offering overdrafts and loans.
Nikolay Storonsky, founder and CEO of the firm explained that they intend to provide comprehensive financial services.
“With the banking license now secured, commission-free stock trading progressing well and five new international markets at [the] final stages of launch, we are living up to our reputation as the ‘Amazon of banking.’ Our vision is simple: one app with tens of millions of users, where you can manage every aspect of your financial life with the best value and technology.”
According to him, the vision is that retail and business customers will be able to apply for a loan in just two minutes from within the app, and then have the money in their account almost instantly. “We’ll remove the bureaucratic process and come in cheaper than traditional lenders” he added.
The new banking services which expected to begin in 2019 is one in a series of advancements the fintech unicorn since last year. Following the attention towards cryptocurrency, the firm added introduced cryptocurrency service which included support for Bitcoin [BTC], Ethereum [ETH], Bitcoin Cash [BCH], Litecoin [LTC], and Ripple [XRP]. It also plans to introduce free-commission stock trading for users in Europe by next year.
It will be interesting to see how the new services affect the firm which currently has about 3 million users, and is said to generate $4 billion in transaction volume per month. One downside of being a bank is that it will be required to ensure through KYC requirements; the process of opening a Revolut account is fairly easy now. The rollout will start with the United Kingdom, France, Germany, and Poland.