Digital banking firm Revolut has received full approval to operate as a bank in the United Kingdom after the Prudential Regulation Authority lifted restrictions on its license.
The development allows the fintech company to formally launch as a fully regulated bank in its home market and expand its range of financial products.
“Becoming a bank in our home market marks a defining moment in our journey — a milestone achieved through relentless focus, discipline, and belief in what we’re building,” said Francesca Carlesi, Revolut’s UK chief executive, in a statement. “Securing this license lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day.”
With the full license, Revolut can now offer products including loans, mortgages, credit cards, overdraft protection and savings accounts — services already provided by rival digital banks such as Monzo and Starling.
The move also means customers’ deposits will be protected by the Financial Services Compensation Scheme, covering funds of up to £120,000 if the bank fails.
Revolut first applied for a UK banking license in 2021, but its application faced several challenges. Auditors had warned that they were unable to fully verify the company’s revenue figures for that year due to weaknesses in the design of its IT systems.
The company said it has since strengthened its internal controls and simplified its share structure by converting six classes of shares into ordinary stock to comply with regulatory requirements.
In 2024, regulators granted Revolut a conditional license, placing the company in a “mobilisation” phase that allowed it to test its systems and gradually introduce services while addressing any issues identified by regulators.
During that period, the company was restricted to holding no more than £50,000 in total customer deposits. The lifting of that restriction marks the end of the mobilisation phase and clears the way for full banking operations.
Revolut co-founder Nik Storonsky described the development as a major milestone in the company’s long-term strategy.
“We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe,” Storonsky said.
Revolut currently serves about 13 million customers in the UK and around 70 million globally.
The company said existing UK customers will not see immediate changes. It will provide at least two months’ notice before migrating accounts to the new banking structure, with the first group of customers expected to be notified in the coming days.
New accounts will also begin rolling out gradually, starting with a small group of customers before expanding over the coming weeks.
The approval comes less than a week after Revolut announced it had applied for a US banking charter and federal deposit insurance, while also appointing a new chief executive for its American operations.
Revolut said it plans to spend $13 billion to grow its global user base to 100 million customers and create 10,000 jobs as it expands into more than 30 new markets by 2030. The company was valued at $75 billion in November.
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