Revolut expands into private banking with new FCA approvals

Revolut is pushing deeper into wealth management and private banking after securing new regulatory approvals. The UK FinTech firm, valued at around $75 billion, has expanded its financial services permissions to target high-net-worth clients.

The move follows a strong financial year, with pre-tax profits hitting £1.7 billion and revenues reaching £4.5 billion in 2023. The Financial Conduct Authority (FCA) recently granted Revolut fresh permissions to offer more complex financial products. These include leveraged investments, managed portfolios, and private wealth services. Victoria Laffey, Head of Operations at Revolut’s trading division, noted that the new approvals bring investment, advisory, and portfolio management under a single platform.

Wealth management has already become a key revenue driver for the company. Last year, wealth-related income surged by 31% to £663 million. The expansion into private banking will cater to clients with at least £500,000 in deposits, with UK services expected to launch later in 2024.

Revolut’s growth comes after a long regulatory process. Earlier this year, it finally obtained a full UK banking licence from the Prudential Regulation Authority, four years after applying. The company’s business model now extends well beyond traditional banking, generating fees from subscriptions, foreign exchange, payments, and wealth products.

The push into high-net-worth services marks another step in Revolut’s strategy to diversify. With a valuation of $75 billion from a recent secondary share sale, the firm is positioning itself as a major player in premium financial services. The new permissions allow Revolut to offer a broader range of financial products to wealthy clients. Private banking services will roll out in the UK before the end of the year. This expansion follows a period of rapid growth, with wealth management now accounting for a significant share of the company’s revenue.