Magic Circle firm Linklaters advised fintech Revolut on securing its UK banking licence, three years after first applying.

Linklaters helped the fintech navigate a complicated licensing process, which had run into difficulties because of issues with Revolut’s internal accounting, Reuters reported. The fintech had twice delayed releasing its full-year accounts in recent years, while its auditor said it couldn’t independently verify all revenues in Revolut’s 2021 accounts, according to Reuters.

Revolut has been granted authorisation but with restrictions by the UK’s banking regulator the Prudential Regulation Authority (PRA), a common step for many new banks. This restricted – or ‘mobilisation’ – phase will enable Revolut to invest in the necessary staff and infrastructure before being able to officially launch as a bank. During this 12-month period, banks must demonstrate that they are ready to be fully operational and fix any issues identified by the PRA.

UK fintech Revolut was founded in 2015 by Nik Storonsky. It already has more than nine million customers in the UK and 45 million globally, but no physical branches. Before being granted its banking licence, Revolut’s app-based financial services platform operated as an e-money institution in the UK, a designation that allowed it to offer bank accounts and other payment services but not make loans.

It joins a small band of similar branchless challenger banks that have secured a banking licence from the PRA, including Starling Bank and Monzo.

The Linklaters team that advised Revolut included partners Edward Chan, Lisa Chang, Martyn Hopper and Elizabeth Dowd, alongside managing associates Bobby Butcher and Elli Karaindrou (banking); Sophie Walden and Joseph Richmond (financial regulation); and Poppy Burke-Moore (corporate). They were also supported by banking associate Max Dyck and financial regulation associates Elliot Jack and Emily Domingo.

Tom Hambrett, Revolut Group’s general counsel, said: “As our bank operations enter this next phase in a core market for Revolut, we are very grateful to the team at Linklaters for their outstanding advice and support throughout the process. This marks a major milestone for our customers in the UK and we will continue to work relentlessly to offer the best products and services to improve the financial lives of everyone who uses Revolut.”