Revolut CEO and co-founder Nikolay Storonsky expressed confidence in the company\u2019s prospects for securing a UK banking license, following a record-breaking financial year.<\/p>\n
In an exclusive interview, Storonsky highlighted that the company\u2019s substantial size has contributed to the extended approval process for its banking license. He noted that smaller financial institutions typically face shorter approval timelines.<\/p>\n
\u201cWe\u2019re hopeful that we\u2019ll get it soon,\u201d Storonsky said, referring to the ongoing regulatory review. Despite some challenges, he emphasized that regulators have not raised any major concerns.<\/p>\n
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.<\/p>\n
One significant hurdle was aligning Revolut\u2019s share structure with the Prudential Regulation Authority\u2019s 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.<\/p>\n
Revolut\u2019s financial results for 2023 reflect a banner year for the company. Pre-tax profit surged to \u00a3438 million ($545 million), a turnaround from a loss of \u00a325.4 million in 2022. Group revenues nearly doubled to \u00a31.8 billion ($2.2 billion), up from \u00a3920 million ($1.1 billion) the previous year.<\/p>\n
Victor Stinga, Revolut\u2019s CFO, attributed the growth to a record increase in user numbers\u201412 million new customers in 2023\u2014as well as strong performance in key business areas such as card fees, foreign exchange, and subscriptions. Stinga described 2023 as a \u201cbreakout year\u201d for both growth and profitability.<\/p>\n
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\u2019s focus on financial discipline, with operating expenses growing at a slower rate than revenues.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fintech giant sees significant growth and financial success<\/p>\n","protected":false},"author":331,"featured_media":47988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[3199,10616,4745],"class_list":["post-47987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-ceo","tag-revolution","tag-tech"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/47987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=47987"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/47987\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/47988"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=47987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=47987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=47987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}