(Bloomberg) -- Revolut Ltd., Europe’s most valuable fintech, will offer trading of UK and EU-listed stocks from next year, as competition among retail brokers serving British investors intensifies.
The London-headquartered company — which recently secured a UK banking authorization — has received approval from the Financial Conduct Authority as an investment firm which permits it to expand its services, it said in a statement Monday. The FCA declined to comment.
Revolut had been developing the technology required to support UK and EU-listed products prior to gaining approval, Yana Shkrebenkova, Revolut’s head of wealth and trading in the UK, said in an interview. The trading license will allow the firm to bring on board a broader set of brokers for managing client assets and grow its customer base in its home country, she added.
Revolut enters a crowded market for UK stock trading, with rivals including Trading 212 Group Ltd. and Freetrade Ltd. already competing with incumbents like Hargreaves Lansdown Plc and AJ Bell Plc. The UK government is keen to encourage investment in local equities, prompting the FCA to overhaul its listing rules in July in a bid to make its markets more attractive.
The challenger bank currently offers trading of US-listed stocks inside its app via a partnership with a regulated third party. Around 650,000 customers currently use Revolut’s trading services in the UK, out of more than 10 million registered users of its banking app.
The company launched a standalone investment app in countries across Europe in September, aiming to compete with the likes of Robinhood Markets Inc. and eToro Group Ltd. by going after new customers that do not wish to use its banking services. Should the European pilot be successful, the app will also be rolled out in the UK, Shkrebenkova said.
Revolut is exploring support for tax-advantaged accounts like a stocks and shares ISA, she added, as well as bonds. It is also considering launching margin investing in the future, a service which would follow in the footsteps of rival Robinhood.
Founded in 2015, Revolut was recently valued at $45 billion in a round of investment involving a secondary share sale. The fintech firm also has plans for an initial public offering in future, its UK Chief Francesca Carlesi said in March.
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