Monday 08 December 2025 7:57 am
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Plum chief executive Victor Trokoudes
Smart money app Plum has managed to secure an e-money licence from the City watchdog, City AM can reveal, even as the volume of application approvals slumps.
Plum, which was founded by the former head of banking at Wise, Victor Trokoudes, in 2016, has received authorisation to operate as an Electronic Money Institution (EMI) from the Financial Conduct Authority (FCA).
The move gives Plum the green light to essentially operate as a bank with a narrower scope by offering online transfers, prepaid cards and managing digital wallets.
The London-based fintech company has more than 2m clients and helps to automate complex aspects of personal finance.
Trokoudes said the new licence was a “huge milestone” that would allow the firm to “broaden [its] services further and offer new features”.
Plum’s revenue totalled £12.8m in the year ended 31 March 2024, according to Companies House filings, up from £6.2m in the previous financial year.
The fintech, which has a headcount of 169 employees, made a loss of £9.6m for the same period, down from £14.3m the year prior.
Plum wins rare backing from FCA
Earlier this year, Klarna received the same stamp of approval from the watchdog, allowing it to accelerate its transition into becoming a digital bank.
But other firms have struggled to get the regulator’s seal of approval.
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City AM revealed in September that just six e-money licence applications had been granted by the FCA over the course of nine months.
The data also revealed that no EMI licence was granted in the fourth quarter of 2024, despite at least 10 applications under consideration at the time.
The crucial licence permits firms to provide payment services and issue electronic money, making it an essential roadblock for Britain’s fintech startups.
The figures suggest that, despite Chancellor Rachel Reeves’ mission to overhaul regulation and “slash red tape” across the City, regulatory roadblocks remain a major headache for London’s fintechs.
Reeves unveiled her package of reforms for the fintech industry as part of her Financial Services Growth and Competitiveness Strategy in July.
Last week, the Treasury set out new plans for short-term licences to allow fintech startups to kick into action ahead of full approval.
But the deregulation efforts have been criticised for failing to make waves, with anxiety across the sector rising as Britain slips in global rankings.
Industry leaders told City AM there was “no room for complacency” after new data from think tank Z/Yen showed Singapore, Hong Kong and Shenzhen had leapfrogged London in global fintech rankings.
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