With dark clouds of Brexit uncertainty still hovering over the City of London, many firms are preparing for the worst. Revolut, the challenger bank and FinTech firm, is the latest company to announce measures aimed at protecting itself from any post-Brexit fallout.
Reports this Sunday from the Financial Times indicate that the challenger bank is applying for an e-money license in Luxembourg. Currently, Revolut has an e-money license from the UK’s Financial Conduct Authority (FCA).
As the UK – despite the best wishes of 17.4 million people – remains in the EU, the FCA’s license still allows Revolut to operate in Europe. But with the Brexit date fast approaching, and no clear deal having been reached, it seems Revolut is hedging against any negative impact that Brexit may have on its ability to do business in Europe.
Revolut Global Expansion
Though Brexiteers may now see the company as a cohort of traitorous remoaners, Revolut doesn’t appear to have plans to leave the UK. According to a report by the UK’s City AM, the firm wants to remain in the UK unless it is unable to continue attracting investment and the requisite personnel.
Indeed, the firm’s financial report for the year 2017, released on Sunday, indicates that it is going to be submitting a UK Banking Authorisation application. The firm also plans further investment in its “technology infrastructure and core product offering.” Given its headquarters remain in London, its likely that investment will be in the UK.
To some degree, Brexit is not the biggest event on Revolut’s expansionist horizon. Aside from banking applications in Luxembourg and Lithuania, the firm plans on opening up shop in the United States and Australasia in the near future.
Already the challenger bank has test clients in Hong Kong and, despite not having launched in either country, it is processing payments in New Zealand and Australia. In April of this year, Revolut raised $250 million in funding – so even if the company does eventually leave the UK, it won’t be disappearing completely any time soon.