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
Sainsbury’s Bank withdraws all base rate tracker products
Sainsbury’s Bank has removed all of its base rate tracker mortgage products with immediate effect...
Leek United extends mortgage offer period
Leek United Building Society has announced that it has doubled the offer period on its mortgages from three to six months...
STB strengthens real estate finance division
Secure Trust Bank (STB) has announced the appointment of Chris King (pictured above) and Andy Thomson to lead the company’s real estate finance division across London and the South East...
CYBG and Virgin Money agree takeover offer
The boards of Virgin Money Holdings (UK) PLC and CYBG PLC have agreed the terms of a recommended all-share offer to be made by CYBG for Virgin Money...
UTB extends max loan size on second charge mortgages
United Trust Bank has increased the maximum loan size on its second charge mortgages from £250,000 to £400,000...
BBB launches online information hub
The British Business Bank has introduced an online hub that provides information regarding the finance options available to scale-up, high-growth and potential high-growth smaller businesses...
Metro Bank updates mortgage rates
Metro Bank has refreshed the rates across its residential, buy-to-let (BTL) and large loan ranges...
Our response to the Treasury committee's SME finance inquiry
Earlier this year, the Treasury committee launched an inquiry into SME finance looking at a number of issues...
Anthony Browne joins Coconut board
Coconut – the smart current account for freelancers and the self-employed – has appointed Anthony Browne (pictured above) to its board...
Cambridge & Counties to launch new products and expand UK reach
Specialist bank Cambridge & Counties has revealed that it aims to cover the entire country within the next few years, as well as expanding its product suite...
OakNorth provides £7.3m loan to luxury hotel chain
OakNorth has completed a £73m loan to Z Hotels, bringing its total lending to the hotel group to £225m...