UK fintech company Plum has been authorised to operate as an Electronic Money Institution by the Financial Conduct Authority.
The move adds Plum to a small group of companies that have secured approval during a period of slow licencing activity. The authorisation comes in the context of the regulator being noticeably cautious in issuing new permissions. City AM previously reported that the FCA granted only six e-money licences in the first nine months of 2024, with none issued in the final quarter despite several applications pending. The approval follows a similar decision earlier this year in favour of Klarna, enabling the Swedish firm to continue its shift towards wider digital banking services.
Regulatory environment under scrutiny
The FCA’s reluctance to issue licences has become a growing concern within the sector. Although the government has promised a more supportive regulatory framework, most recently through plans to simplify rules and improve competitiveness, industry figures noted that progress has been limited. Representatives from Z/Yen, whose latest rankings placed Singapore, Hong Kong and Shenzhen ahead of London, said fintech firms could not afford to assume the UK would maintain its status without further action.
Plum’s new permission allows it to offer payment services, issue electronic money and operate digital wallets, functions that place it close to a narrowly defined form of banking. The company, founded in London in 2016 by a former senior figure from Wise, reports more than 2 million customers using its automated financial tools.
Recent filings show Plum generated GBP 12.8 million in revenue during the year ending March 2024, a rise from the previous year’s GBP 6.2 million. The company reported a reduced annual loss of GBP 9.6 million, down from GBP 14.3 million, and employed 169 staff during the period.
