^{Source: FinTech Futures}

In a landmark year for British fintech, Revolut has reported a staggering 149% increase in pre-tax profits, reaching £1.1 billion ($1.5 billion) for the fiscal year ending December 31, 2024. This financial triumph coincides with the company's long-awaited acquisition of a UK banking license, positioning it to offer a broader range of financial services to its expanding customer base.​

Financial Performance: A Year of Unprecedented Growth

Revolut's revenue surged by 72% year-over-year, totaling £3.1 billion, up from £1.8 billion in 2023. This growth was driven by multiple revenue streams:​

• Wealth Division: Revenue from trading and crypto services skyrocketed by 300% to £506 million, bolstered by the launch of a new crypto exchange platform.​
• Subscription Services: Income from premium subscriptions increased by 74%, reaching £423 million.​
• Interest Income: Interest earned from customer deposits rose by 58% to £790 million, reflecting a significant increase in customer balances from £18 billion to £30 billion.​

The company's customer base expanded to 52.5 million globally, up from 38 million the previous year, highlighting its growing influence in the fintech sector.​

UK Banking License: A Strategic Advancement

After a protracted three-year application process, Revolut secured a UK banking license with restrictions in July 2024. This approval from the Prudential Regulation Authority allows the company to enter a "mobilization" phase, during which it will build out its banking infrastructure. Once fully operational, Revolut will be authorized to offer services such as credit cards, personal loans, and mortgages in the UK.​‍

The license also enables Revolut to hold customer deposits directly, with funds protected up to £85,000 under the Financial Services Compensation Scheme. This development is expected to enhance customer trust and facilitate the company's goal of becoming a primary banking provider in the UK.​

Corporate Developments and Future Outlook

CEO Nikolay Storonsky increased his stake in the company to over 25% following a corporate restructuring. Revolut's valuation has reached $45 billion, making it the UK's most valuable fintech firm.​‍

The company has also implemented a points-based "Karma" system to monitor employee compliance and risk practices, aiming to foster a healthier work culture and address past criticisms.​

Looking ahead, Revolut plans to expand its lending services in the UK and is considering an initial public offering, potentially opting for a listing on the New York Stock Exchange. The company aims to reach 100 million daily active users globally, reflecting its ambitious growth strategy.​

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Revolut's impressive financial performance and strategic advancements in 2024 underscore its evolution from a digital payments startup to a comprehensive financial services provider. With the UK banking license secured and a diversified revenue model, the company is well-positioned to compete with traditional banks and continue its global expansion.

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