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Fintech firm Revolut secures full UK banking license
Revolut has been granted a full UK banking license after first applying in 2021 and can now offer retail and business accounts, and products such as lending.
The Prudential Regulation Authority issued a restricted license in July 2024 that capped total customer deposits at £50,000 (US$66,852).
Approval to exit the mobilisation phase allows Revolut to operate as a fully licensed bank in the UK.
The company said it reached US$75 billion valuation in 2025 and has about 70 million customers.
It also said it applied for a US banking licence and plans to enter 30 more markets by 2030.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
Why the banking licence took so long
- UK regulators worried Revolut’s risk controls had not kept up with fast global growth 1.
- The Prudential Regulation Authority (PRA), a Bank of England regulator that oversees the safety and soundness of banks, wanted proof that compliance and IT systems worked across overseas operations as well as the UK 1.
- The review led co-founder Nik Storonsky to say early plans put expansion ahead of licensing compliance 1.
- In the “mobilisation phase,” which ran past the usual 12 months, Revolut’s UK banking arm could hold only £50,000 in total deposits 2.
How a UK licence shapes Revolut’s global plans
- Approval from its home regulator reassures watchdogs abroad and clears a hurdle for global rollout 2.
- UK customers get deposit protection up to £85,000 through the Financial Services Compensation Scheme, a UK scheme that protects bank deposits if a firm fails, bringing cover in line with traditional banks 3.
- The licence also brings tighter oversight. Barclays CEO C.S. Venkatakrishnan said Revolut gained an advantage without a UK banking licence since it lacked the same duties to depositors as fully regulated firms 2.
- With the licence, Revolut can lend at scale in the UK 2. It could also add products like credit cards, raising pressure on traditional banks and challenger banks (digital-first banks that compete with incumbents) 2.
