TLDR
- Revolut has been granted a complete UK banking license under PRA and FCA oversight
- Customer deposits now qualify for FSCS protection covering up to £120,000 ($160,000)
- Revolut Bank UK Ltd., a newly established entity, will manage accounts with migration starting soon
- Cryptocurrency, stock, and commodity services continue operating through distinct Revolut divisions
- The fintech firm has submitted banking license requests in both the United States and Peru
On Wednesday, London-headquartered fintech giant Revolut secured full banking authorization in the United Kingdom. The Prudential Regulation Authority (PRA), which supervises conventional UK banking institutions, granted the approval.
A newly formed entity, Revolut Bank UK Ltd., will operate under this license. Current UK account holders will transition to this new banking structure during the upcoming months.
This achievement concludes a multi-year journey. Revolut initially obtained a restricted UK banking license in 2024, entering the mobilization period—a typical preparatory phase before receiving unrestricted authorization.
Account transitions will occur gradually. Customers will receive notification via email or through the mobile application when their migration is scheduled.
Following a November funding round, Revolut’s valuation stands at approximately $75 billion. The platform serves more than 10 million users across the UK.
What Deposit Protection Means for Customers
With this new authorization, qualified customer deposits receive Financial Services Compensation Scheme (FSCS) coverage. The scheme protects up to £120,000 per individual should the institution collapse.
FSCS functions comparably to America’s FDIC, which safeguards US banking deposits up to $250,000. Prior to obtaining this license, Revolut users lacked such protection for their primary account balances.
During the transition, account numbers, sort codes, and IBAN information will remain unchanged. Historical transactions and account statements will continue being accessible within the application.
Savings accounts will remain with Revolut’s partner banking institutions. Each partner maintains separate FSCS coverage limits, distinct from the new banking entity’s protection.
Crypto and Stock Services Remain Outside the Bank
Cryptocurrency trading, equity investments, and commodity trading will not transfer to the newly licensed banking entity. These offerings will persist through separate Revolut divisions operating under distinct regulatory structures.
The banking arm plans to introduce lending products and additional financial services moving forward. Revolut indicated the license enables a “wider range” of future offerings.
Revolut submitted an application for a federal banking charter in the United States during January. A concurrent application was filed for Peruvian banking authorization.
The US charter pursuit reflects a broader industry movement of cryptocurrency and fintech platforms seeking conventional banking credentials. Revolut joins a limited number of fintech companies pursuing full banking operations across multiple countries.
This UK licensing approval represents Revolut’s most significant regulatory achievement thus far. Complete migration of UK customer accounts is anticipated to require several months.
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