Revolut Faces Delays in Securing UK Consumer Credit Licence
Revolut still hasn’t secured a UK consumer credit licence, stalling plans for credit cards and lending services in its home market.
Revolut, the $45 billion global fintech, is still waiting to receive a consumer credit licence from UK regulators. While the company secured a restricted UK banking licence last year, this latest delay marks another hurdle in its journey to become a full-service British bank.
Although the firm offers credit services in the EU, its UK credit ambitions remain on hold. Consequently, this regulatory hold-up may delay Revolut’s launch of credit cards and instalment-based payment options in Britain.
Still Awaiting Final Regulatory Approval
Revolut applied for the UK consumer credit licence in 2023. However, the Bank of England’s Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have yet to give approval. The delay underscores how challenging it can be for even the largest fintechs to navigate UK’s regulatory framework.
The consumer credit licence, while separate from the banking licence, is essential. It allows fintechs like Revolut to offer lending products such as credit cards, buy-now-pay-later services, and credit scoring tools.
Current Restrictions Limit Revolut’s UK Operations
Last July, Revolut received its UK banking licence from the PRA — but with heavy restrictions. Notably, it cannot accept deposits exceeding a total of just £50,000, and it cannot issue loans. Until these limits are lifted, Revolut cannot operate as a full bank in the UK.
To remove these constraints, Revolut must exit the “mobilisation phase”, a transitional period meant to help new banks set up properly. The PRA says this period should last no longer than 12 months, although it admits that delays may occur due to factors beyond a company’s control.
EU Credit Services Are Already Live
In contrast, Revolut already provides consumer credit services in Ireland, Poland, and Lithuania. Customers there can access credit cards and flexible instalment plans, indicating Revolut’s competence in this area. These offerings are supported by its pan-EU banking licence, granted by regulators in Lithuania.
Interestingly, Revolut also offers fast mortgage approvals in Lithuania by using its own credit scoring system. This tool could be adapted for the UK once local permissions are granted, potentially improving access to housing finance.
Delay Could Impact UK Rollout Plans
Despite the delays, Revolut remains focused on becoming a fully authorised lender in the UK. However, executives acknowledge that timelines may shift. A person familiar with the matter stated the July 25 deadline to exit mobilisation is “not a statutory limit.”
Moreover, because of its size and complexity, Revolut’s licensing journey was always expected to be longer than that of a typical startup bank. Still, the firm’s continued regulatory uncertainty could slow its ability to compete in the UK’s booming consumer credit market.
What’s Next for Revolut in the UK?
To become a trusted financial hub, Revolut must overcome the final barriers to its full UK launch. Once granted a consumer credit licence, the fintech can expand offerings, including credit cards, instalment payments, and potentially mortgage loans in Britain.
For now, though, the wait continues — and with it, the spotlight remains on Revolut’s next regulatory move.
