TL;DR:
- Revolut received regulatory approval from the UK’s PRA to launch Revolut Bank UK Ltd, with deposits protected up to £85,000.
- The neofintech will begin offering current accounts gradually to its 13 million UK customers over the coming weeks.
- Cryptocurrency trading services will continue operating under a separate entity, without coverage from the FSCS compensation scheme.
The UK’s Prudential Regulation Authority lifted the restrictions on Revolut‘s banking licence and approved the launch of Revolut Bank UK Ltd, marking the formal entry of the neofintech into the country’s regulated banking system. The entity will be able to offer deposits protected by the Financial Services Compensation Scheme of up to £85,000 per customer, and expand its offering into credit products and other financial services.
The company will begin onboarding current accounts gradually over the coming days, starting from a small group before scaling up in the following weeks. Existing customers will not see immediate changes: the app and cards will continue functioning normally while a phased migration is carried out over several months. The company committed to notifying its users at least two months in advance before transferring their accounts to the bank.
Nik Storonsky, co-founder and CEO of the company, underscored the strategic weight of the licence. “Launching our bank in the UK has been a long-term strategic priority,” he stated. “The UK is our home market and is central to our growth.”
Revolut Looks Beyond the Atlantic
Francesca Carlesi, the fintech’s UK CEO, highlighted that the licence will also kick off a new phase of product expansion, including credit, which will be added to the services already available to customers.
Analyst Elliot Reader, director in Houlihan Lokey’s fintech group, noted that this will transform the company into a full-fledged banking competitor. “This is the moment Revolut goes from being a major fintech disruptor to a mainstream banking competitor,” he stated. “The full licence will open the door to balance-sheet-backed products and will increase pressure on both traditional banks and challenger banks.”
The company announced a £10 billion investment globally over five years, the creation of 10,000 jobs and entry into 30 new markets before 2030. Additionally, Revolut applied for a de novo banking licence in the United States before the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
