Key Takeaways
- Revolut has been granted a full UK banking license under PRA and FCA supervision
- Customer deposits now qualify for FSCS protection covering up to £120,000 ($160,000)
- Revolut Bank UK Ltd. has been established as a new entity; customer migration starts in the coming months
- Cryptocurrency, equity, and commodity trading continue under distinct Revolut entities
- Banking license applications have also been submitted in the United States and Peru
The London-headquartered fintech firm Revolut officially obtained a full UK banking license this Wednesday. Authorization was granted by the Prudential Regulation Authority (PRA), the regulatory body responsible for supervising conventional UK banking institutions.
A newly formed entity, Revolut Bank UK Ltd., will operate under this license. The company plans to transition existing UK customers to this new banking structure throughout the upcoming months.
This authorization concludes a multi-year regulatory journey. Revolut initially obtained a restricted UK license in 2024 and subsequently entered a mobilization period, which represents a typical preparatory stage for emerging banks before receiving unrestricted approval.
Account transitions will occur in phases. Customers will receive notification via email or through in-app messaging when their account migration is scheduled.
Following a November funding round, Revolut holds an approximate valuation of $75 billion. The firm serves more than 10 million customers throughout the UK.
Understanding the New Deposit Protection Framework
With this banking license in place, qualifying customer deposits will receive Financial Services Compensation Scheme (FSCS) protection. This safeguard covers amounts up to £120,000 per individual in the event of bank insolvency.
The FSCS operates with principles comparable to the United States’ FDIC system, which protects American bank deposits up to $250,000. Prior to receiving this license, Revolut customers lacked this protection level for their primary account balances.
Customers will retain their existing account numbers, sort codes, and IBAN information throughout the transition process. Historical transactions and account statements will remain accessible within the application.
Savings account balances will stay with existing partner banking institutions. Each partner bank maintains separate FSCS coverage limits independent from the newly licensed banking entity.
Digital Assets and Investment Products Stay Under Separate Structure
Cryptocurrency trading, equity investments, and commodity services will not transfer to the new banking entity. These offerings will remain operational through distinct Revolut entities governed by alternative regulatory structures.
The newly licensed bank anticipates expanding into credit products and additional financial services going forward. According to Revolut, this license creates opportunities for introducing a “wider range” of banking products.
Revolut submitted an application for a federal banking charter in the United States during January. Simultaneously, the company filed for banking authorization in Peru.
The American charter application aligns with a broader industry movement where cryptocurrency and fintech platforms pursue traditional banking credentials. Revolut is among a limited group of fintech companies working toward full banking operations across multiple countries.
This UK license represents Revolut’s most significant regulatory achievement to date. Complete migration of UK customer accounts is anticipated to require several months for full implementation.
