TLDR
- Revolut has been granted full UK banking authorization by the PRA and FCA
- Customer deposits now qualify for FSCS protection covering up to £120,000 ($160,000)
- Revolut Bank UK Ltd., a newly established entity, will handle the banking operations with account transfers starting soon
- Cryptocurrency, stock, and commodity trading will continue under different Revolut divisions
- Additional banking license applications are pending in the United States and Peru
The London-headquartered fintech firm Revolut has secured full banking authorization in the United Kingdom as of Wednesday. The Prudential Regulation Authority (PRA), which regulates conventional British banks, granted the approval.
A newly formed legal entity, Revolut Bank UK Ltd., will operate under this license. Current UK users will transition to this new banking structure during the upcoming months.
This achievement concludes a multi-year journey. Revolut initially obtained a conditional UK banking license in 2024 and underwent a mobilization period, which is typical for emerging banks before receiving unrestricted authorization.
Account transitions will occur gradually. Customers will receive notifications through email or 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.
Understanding the New Deposit Protection Framework
With this banking authorization, qualifying customer funds will receive Financial Services Compensation Scheme (FSCS) protection. This safeguard covers deposits up to £120,000 per individual in the event of institutional failure.
The FSCS functions comparably to America’s FDIC system, which insures US deposits up to $250,000. Previously, Revolut users lacked this protection level for their primary account balances.
During the transition process, account numbers, sort codes, and IBAN information will remain unchanged. Historical transactions and account statements will continue to be accessible within the application.
Savings products will still be maintained through Revolut’s partner banking institutions. Each partner institution maintains independent FSCS coverage limits, distinct from the newly licensed banking entity.
Cryptocurrency and Investment Products Stay Under Separate Entities
Cryptocurrency services, equity trading, and commodity offerings will not transfer to the banking division. These products will remain managed through distinct Revolut entities subject to alternative regulatory oversight.
The newly authorized bank plans to introduce lending products and additional financial services going forward. Revolut indicated that this license enables delivery of a “wider range” of banking solutions.
Revolut submitted an application for a federal banking charter in the United States during January. A concurrent application for Peruvian banking authorization was also filed.
The American charter application aligns with a broader industry movement where cryptocurrency and fintech firms pursue traditional banking credentials. Revolut is among a limited number of fintech companies pursuing full banking operations across multiple countries.
This UK banking authorization represents Revolut’s most significant regulatory achievement thus far. The complete migration of UK customer accounts is anticipated to require several months.
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