Full Breakdown
Revolut Secures Full UK Banking Licence After Lengthy Approval Process
3/13/2026, 4:43:22 AM
Regulatory Milestone for Revolut
Revolut, the London-based fintech company, has officially received a full banking licence from the Bank of England’s Prudential Regulation Authority (PRA), concluding a five-year journey marked by regulatory scrutiny and delays. This approval allows Revolut to operate as a fully-fledged bank in the UK, enabling it to offer current accounts and a broader range of financial services, including lending, to its 13 million UK customers. The rollout of current accounts will begin with a limited number of new customers, expanding gradually to ensure a smooth transition.
Background of the Licensing Process
Revolut first applied for a UK banking licence in 2021 and was granted a restricted licence in July 2024, which limited its ability to hold customer deposits to £50,000. The extended "mobilisation phase," which typically lasts about 12 months, lasted for over 18 months for Revolut, raising questions about the regulatory process. Concerns regarding the company's risk management and compliance systems were significant factors in the prolonged approval timeline. The scrutiny intensified when Chancellor Rachel Reeves attempted to facilitate discussions between Revolut and regulators, a move blocked by Bank of England Governor Andrew Bailey, who cited the need for regulatory independence.
Implications of Full Banking Status
With the full licence, Revolut can now accept customer deposits at scale and offer products such as personal loans and credit cards, which are more profitable than its previous offerings. This shift positions Revolut to compete directly with established banks like Barclays, Lloyds, and NatWest, which have dominated the UK market. The approval also means that customer deposits will be protected under the Financial Services Compensation Scheme (FSCS), covering eligible deposits up to £120,000.
Official Statements & Responses
Nik Storonsky, co-founder and CEO of Revolut, emphasized the significance of this milestone, stating, “Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey. The UK is our home market and central to our growth.” Francesca Carlesi, UK CEO at Revolut, added, “Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit.”
Criticism & Opposition
The lengthy approval process has drawn criticism regarding the UK’s regulatory environment, with some suggesting that the scrutiny faced by Revolut was excessive compared to other fintech firms. Barclays' CEO previously noted that Revolut had benefited from operating without a full banking licence, implying that the fintech's rapid growth was partly due to its less stringent regulatory obligations.
What's Next for Revolut
Following the successful acquisition of its UK banking licence, Revolut plans to expand its services and has announced a £3 billion investment in the UK, aiming to create 1,000 high-skilled jobs. Additionally, the company has applied for a banking licence in the United States as part of its broader strategy to grow its global presence, targeting 30 new markets by 2030.
Verbatim Quotes
- “Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey. The UK is our home market and central to our growth.” — Nik Storonsky, Co-Founder and CEO of Revolut
- “Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day.” — Francesca Carlesi, UK CEO at Revolut
This new chapter for Revolut not only enhances its competitive position in the UK but also sets the stage for its international expansion, potentially reshaping the landscape of retail banking in Europe and beyond.
