Revolut Gains Full UK Banking Licence, Expands Regulated Services
Revolut receives approval to operate as a fully licensed bank in the UK.
Revolut Bank UK Ltd received regulatory approval from the Prudential Regulation Authority (PRA) to exit the mobilisation phase and begin operating as a fully licensed bank in the United Kingdom.
The approval allows the company to introduce banking services for its existing base of around 13 million UK customers, with eligible deposits protected under the Financial Services Compensation Scheme (FSCS), while gradually transitioning users from its electronic money institution structure to the new banking entity.
Key Development Highlights
Regulatory approval to operate as a fully licensed UK bank: The PRA lifted restrictions on the previously granted banking licence following a mobilisation period, allowing Revolut Bank UK Ltd to start operating as a regulated bank serving both retail and business customers in the UK.
FSCS protection introduced for eligible deposits: Customers will be able to hold deposit accounts protected by the Financial Services Compensation Scheme, aligning the platform with traditional UK banking safeguards and expanding the regulatory protections available to users.
Gradual rollout of current accounts for new users: Current accounts will initially be introduced to a small group of new customers before expanding in stages over the coming weeks, allowing the institution to manage operational scaling and system performance during the launch phase.
Phased migration plan for existing customers: Existing customers will continue using their current app and cards while accounts are transferred in batches over several weeks. Customers will receive at least two months’ notice before their accounts are moved to the new banking entity.
Investment and employment commitments tied to the UK expansion: The approval follows a commitment to invest approximately £3 billion in the UK and create around 1,000 high-skilled roles, alongside broader global expansion plans that include entry into additional international markets by 2030.
What It Means for the Ecosystem
The transition from an electronic money institution to a licensed bank represents a structural shift that enables digital financial platforms to compete more directly with incumbent banks under the same regulatory framework. Access to deposit protection and the ability to introduce lending and other banking products could increase competitive pressure in the UK retail banking sector, while also reflecting regulators’ willingness to integrate large FinTech platforms into the regulated banking system once operational and compliance thresholds are met.
