Digital banking pioneer Revolut has achieved a major regulatory milestone, obtaining full banking authorization in the UK after navigating a complex five-year approval journey.
The London-based fintech announced it received complete clearance from the Prudential Regulation Authority (PRA), enabling the company to provide comprehensive banking services to retail and business clients. This unrestricted license removes previous limitations and opens pathways for expanded financial offerings.
"Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey," said Nik Storonsky, co-founder and chief executive of Revolut. "The UK is our home market and central to our growth."
The company will roll out current accounts to a limited number of new customers within days, marking the beginning of its transformation into a full-service banking institution.
Revolut's path to full authorization proved challenging, with the company initially submitting its application in 2021. The approval process encountered delays as regulators required the fintech to address various operational and compliance concerns.
According to reports, regulators needed assurance that Revolut had resolved accounting irregularities and European Union regulatory violations, while also addressing concerns about corporate culture practices. These issues contributed to the extended timeline for approval.
The regulatory delays created friction within financial circles, particularly involving Bank of England Governor Andrew Bailey. Tensions escalated when Bailey intervened to prevent a meeting between Chancellor Rachel Reeves and regulatory officials regarding Revolut's banking license, citing concerns about political interference in independent regulatory processes.
Revolut operated under restricted banking permissions since 2024, allowing limited testing of banking systems with select customers. However, these restrictions capped total customer deposits at £50,000, significantly constraining the company's banking operations.
The fintech giant serves 13 million customers across the UK and boasts a global user base of 70 million clients. The company achieved a remarkable $75 billion valuation in recent assessments, positioning it among the world's most valuable financial technology firms.
Since launching in Britain in 2015 as a money transfer and currency exchange service, Revolut has expanded internationally and diversified its product portfolio. The company now operates across multiple markets and continues aggressive expansion efforts.
Looking ahead, Revolut has outlined ambitious growth plans, targeting entry into 30 new markets by 2030. The company recently committed £10 billion in global investments over the next five years to support this expansion strategy.
Specifically for the UK market, Revolut announced £3 billion in domestic investment plans last September, alongside commitments to create 1,000 new employment opportunities. These investments demonstrate the company's confidence in the British market despite regulatory challenges.
With full banking authorization now secured, Revolut plans to introduce a broader range of financial products, including lending services and mortgage offerings. This expansion will position the company to compete directly with traditional banks across core banking services.
The approval represents a significant victory for the fintech sector and may encourage other digital banking companies pursuing similar regulatory pathways in the UK market.