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Revolut CEO and co-founder Nikolay Storonsky expressed confidence in the company’s prospects for securing a UK banking license, following a record-breaking financial year.
In an exclusive interview, Storonsky highlighted that the company’s substantial size has contributed to the extended approval process for its banking license. He noted that smaller financial institutions typically face shorter approval timelines.
“We’re hopeful that we’ll get it soon,” Storonsky said, referring to the ongoing regulatory review. Despite some challenges, he emphasized that regulators have not raised any major concerns.
Currently, Revolut operates as a licensed electronic money institution in the UK, which limits its ability to offer products like credit cards, personal loans, or mortgages. Securing a banking license would allow the firm to provide these financial services. The company first applied for the license in 2021.
One significant hurdle was aligning Revolut’s share structure with the Prudential Regulation Authority’s guidelines. The Bank of England required Revolut to consolidate its six classes of shares into a single class, eliminating preferential rights. Revolut addressed this issue by negotiating with Japanese tech investor SoftBank, as first reported by the Financial Times.
Revolut’s financial results for 2023 reflect a banner year for the company. Pre-tax profit surged to £438 million ($545 million), a turnaround from a loss of £25.4 million in 2022. Group revenues nearly doubled to £1.8 billion ($2.2 billion), up from £920 million ($1.1 billion) the previous year.
Victor Stinga, Revolut’s CFO, attributed the growth to a record increase in user numbers—12 million new customers in 2023—as well as strong performance in key business areas such as card fees, foreign exchange, and subscriptions. Stinga described 2023 as a “breakout year” for both growth and profitability.
Revenue growth was driven by customer expansion, robust performance across revenue streams, and a notable rise in interest income, which now represents about 28% of total revenues. Stinga also noted the company’s focus on financial discipline, with operating expenses growing at a slower rate than revenues.
Revolut invested heavily in advertising and marketing, spending $300 million in 2023, and has prioritized its business banking solutions, with approximately 900 employees dedicated to business-to-business sales.