Revolut has announced that it has applied for a European banking licence.
The digital banking app – which launched in 2015 – has created a number of features for its customers, ranging from multi-currency accounts and fee-free money transfers to instant credit and new business accounts.
Revolut has previewed a number of features that it plans to introduce to the banking app once it has received its European banking licence, including overdrafts and personal loans.
One of the most important benefits that Revolut will be granted upon obtaining a banking licence will be that customers' funds up to €100,000 (approximately £85,000) will be protected under the European Deposit Protection Scheme (EDPS).
The digital bank currently offers recurring payments, but once the banking licence has been put in place, it will allow its customers to set up direct debits through their account.
Revolut hopes to have built its own in-house payment processor by the time it receives the banking licence; this will allow the digital bank to offer its users a much more reliable service and significantly reduce the risk of outages that are out of its control.
The digital bank has been using third-party providers to manage its payments process, but as it approaches the one million-user mark, it will manage its payment processing internally.
Once Revolut has been granted its European banking licence, users will be able to:
• have their salary paid directly into their Revolut account
• set up and manage direct debits for phone bills, car insurance etc
• use overdraft facilities and manage them directly through the Revolut app
• take out a personal loan at competitive rates
• save and earn interest on their term deposits.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Arbuthnot provides working capital facility to shower company
Arbuthnot Commercial Asset Based Lending (ABL) has provided a working capital facility to Majestic Shower Company...
Metro Bank names new NED
Metro Bank has announced the appointment of Catherine Brown as an independent non-executive director...
FP Show confirms Zopa co-founder as keynote speaker
James Alexander, co-founder and former CEO at Zopa (pictured above), has been named as the keynote speaker at the forthcoming Finance Professional Show...
Metro Bank provides £4m invoice finance line to healthcare business
Metro Bank has provided a £4m invoice finance line to medical insourcing specialist 18 Week Support Group...
Modulr to create over 30 new jobs in Scotland
Modulr has completed its latest funding round led by digital venture builder Blenheim Chalcot, which takes the latter’s total investment in the payments fintech to £10.5m...
Specialist banks answer need for products that ‘reflect the reality of today’s society’
Better service and products are the main reasons why a broker would use a specialist bank, according to the latest poll by Specialist Banking...
Leeds Building Society cuts rate on retirement interest-only mortgage
Leeds Building Society has reduced its five-year fixed rate on its retirement interest-only mortgage...
60% of people want to know where their money is invested
Six out of 10 people (60%) want to know where their money is invested, according to the latest research published by Charity Bank...
Why commercial banks are in danger of being left behind
Harnessing a customer-first, technology-led approach, retail banks are paving the way with innovation...
Aldermore supports Quba Solutions with £10m facility
Aldermore has provided a £10m finance facility to Dorchester-based Quba Solutions...
TSB announces new SME banking leadership team
TSB has revealed its new SME banking leadership team as it prepares to launch its business banking proposition later this year...