Fintech
Revolut takes a big step forward in the renovated YY Building in London
What’s going on here?
Revolut will be the first tenant of the recently refurbished ‘YY London’ building in Canary Wharf. Starting in May 2025, the fintech company will move into 113,000 square feet under a 10-year lease.
What does this mean?
Revolut’s move marks a significant milestone in the company’s rapid growth. With a workforce expected to reach 11,500 by the end of 2024, the increase in office space reflects Revolut’s growing ambitions. The move to a prime location in Canary Wharf, with potential giant ‘Revolut’ logos (awaiting planning permission) opposite financial heavyweights such as JP Morgan and Morgan Stanley, enhances its visibility and signals its growing influence in the financial sector. This move also provides a boost to Canary Wharf, which is facing the departure of tenants such as HSBC and Clifford Chance. However, commitments from Barclays and Morgan Stanley ensure the area remains strong.
Why should I care?
For markets: Revitalization of Canary Wharf.
Revolut’s move into ‘YY London’ supports Canary Wharf in difficult times. With declining office demand and falling real estate valuations post-pandemic, high-profile commitments like this are crucial. Canary Wharf Group, owned by Brookfield and the Qatar Investment Authority, is rejuvenating the area, with plans to turn the HSBC building into apartments or hotel space following HSBC’s departure in 2026.
The bigger picture: The rise of fintech in traditional financial centers.
Revolut, founded in 2015 and now boasting 40 million customers worldwide, including 9 million in the UK, symbolizes the disruptive power of fintech in traditional financial centres. Its journey from start-up incubator ‘Level39’ to major tenant in Canary Wharf highlights a bigger picture trend of digital finance companies establishing themselves in prime locations, merging fintech and traditional banking services. However, despite its growth, Revolut is still awaiting approval of its UK banking license, which it applied for over two years ago, demonstrating the regulatory hurdles fintech firms face.