Revolut has gained regulatory clearance to broaden its trading operations.
The UK Financial Conduct Authority (FCA) granted this approval, enabling Revolut Trading to offer “investments, advisory, and portfolio management all in one place.” Victoria Laffey, the unit’s operations chief, shared this news in a release on Thursday.
This green light is expected to help Revolut enhance its asset management capabilities in conjunction with its banking and payment services.
According to Revolut Trading, the company is evolving its business model to deliver more competitive pricing and an expanded range of products. This includes managed portfolio solutions and private wealth services aimed at retail investors, everyday customers, and “high-net-worth individuals,” all within a single ecosystem.
“We’ve always aimed to streamline fragmented financial services, and now we can offer advanced wealth management tools to investors at all levels, assisting our clients in building and managing their wealth confidently,” stated Laffey.
The FCA’s recent approval comes after Revolut’s banking launch in the UK, where the company intends to incorporate advancements in artificial intelligence (AI) into its investment services. This focus is primarily on enhancing how customers manage their portfolios and financial decisions.
Meanwhile, a report from The Financial Times suggested that Revolut is considering launching a private banking service later this year for clients with at least £500,000 in deposits.
“Private banking is a potential area for us as we continually work to enhance our product offerings,” Revolut mentioned in a statement. “Currently, we have no additional details to provide.”
Earlier this year, PYMNTS discussed Revolut’s role in the FinTech sector, noting its diverse revenue streams from subscriptions, payments, assets, and interest income. This diversification aims to lessen the company’s reliance on any single bank as it pursues growth, which includes obtaining a banking license in the U.S., according to the report.
“Firms lacking such diversity may find that acquiring a charter raises expenses without sufficiently benefiting them,” remarked PYMNTS. “For both banks and fintechs, competition is taking clearer forms, no longer just between traditional entities and apps. The real battle is between those holding balance sheets and those that do not.”
