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.
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