London-based fintech giant Revolut has concluded a substantial week of investment for the UK financial services sector by officially unveiling its global headquarters.
The digital banking platform announced it would inject £3bn into the UK whilst generating 1,000 highly-skilled positions over the coming five years, as reported by City AM.
This latest capital commitment follows asset management firm Blackstone’s pledge of £100bn investment alongside £7bn from BlackRock and £1.25bn from leading US financial institutions.
Nik Storonsky, Revolut’s co-founder and chief executive, stated the “commitment will not only create 1,000 new jobs but will also fuel the innovation from our London hub that will help us deliver on our global ambitions.”
The fintech pioneer – celebrated for his meticulous focus on detail – has consistently criticised the UK’s regulatory environment.
Storonsky has previously condemned the “extreme bureaucracy” that complicated conducting business within the country.
Revolut is presently working towards obtaining full banking status in the UK but has encountered numerous regulatory challenges.
Most recently, reports emerged that Bank of England Governor Andrew Bailey had prevented a meeting arranged by Rachel Reeves to assist the fintech in securing its licence.
Revolut’s vote of confidence in the UK
However, Chancellor Rachel Reeves welcomed the fresh investment as a “major vote of confidence in the UK” during her address at Revolut’s global HQ launch on Tuesday. “The UK is well and truly open for business under this government,” stated Reeves.
She praised the Leeds Reforms, announced over the Summer, as “making Britain the best place for financial services companies to do business.”
The Treasury is keen to put its foot down in its mission to deregulate and “cut the red tape” to stimulate economic growth, as part of the government’s Leeds Reform package.
Reeves suggested the changes would “rewire” the financial services ecosystem.
These include a crackdown on the Financial Ombudsman Service – labelled by the industry as a “quasi-regulator” – and consultations on ring-fencing and MREL regulation for the banking sector.
Revolut is rumoured to have achieved a valuation of $75bn after initiating a secondary share sale at the start of this month.
This sale represents another significant increase in Revolut’s valuation, having been valued at $45bn just last year.
The investment into the UK is part of the fintech’s global mission to invest £10bn and create 10,000 new jobs worldwide.
In other news, the company disclosed that its business-to-business division – known as Revolut Business – exceeded $1bn in annualised revenue.
Speaking at Tuesday’s event, Storonsky outlined the company’s next ambitious goal to secure 100m customers.
