Digital banking pioneer Revolut has achieved a major regulatory milestone after receiving approval from the Prudential Regulation Authority (PRA) to exit its mobilization phase and begin operating as a fully licensed bank in the United Kingdom.
The approval comes as Revolut enters this new phase with an established customer base of 13 million users across the UK. The development follows the company's recent commitment to invest £3 billion and create 1,000 high-skilled positions in the country.
With full banking authorization now secured, Revolut Bank UK can offer current accounts to both retail and business customers. Crucially, deposits will now be protected under the Financial Services Compensation Scheme (FSCS) for eligible accounts, providing customers with enhanced security.
The new banking status also positions Revolut to potentially introduce expanded services in the future, including lending products that could diversify its revenue streams beyond traditional fintech offerings.
"The UK is our home market and central to our growth. 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," said Nik Storonsky, Co-Founder and CEO of Revolut.
The company plans a phased rollout approach for its new banking services. Current account offerings will launch in the coming days with a select group of new customers, before gradually expanding over subsequent weeks to ensure operational stability.
Existing Revolut customers should expect minimal immediate disruption during the transition period. Their current Revolut applications and payment cards will continue operating normally while the company manages the technical migration.
Customers will receive notifications about their account migration to the new banking platform over the coming months, according to the company's timeline.
"Securing this license lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the services our customers already rely on every day," said Francesca Carlesi, UK CEO at Revolut.
The banking license represents a significant regulatory achievement for Revolut, which has built its reputation as a leading European fintech company. The move positions the company to compete more directly with traditional high street banks while maintaining its technology-focused approach.
Investors and industry observers will be watching closely to see how Revolut leverages its new banking capabilities to capture market share in the competitive UK financial services sector, particularly as it prepares to introduce lending products to complement its existing digital banking offerings.