Revolut Gains Approval to Operate as a Full UK Bank

After a lengthy five-year wait for regulatory approval, Revolut is set to officially operate as a fully registered bank in the UK.

The fintech firm announced it has obtained a complete banking license from the Prudential Regulation Authority (PRA), which enables it to provide banking accounts to both retail and corporate customers.

In the coming days, the company plans to introduce checking accounts to a limited number of new clients.

This development comes after Revolut’s initial application in 2021 for a UK banking license, which was initially granted on a “limited basis” for 2024.

The company’s leadership expressed growing frustration over the delays from UK regulators in granting complete authorization for customer deposits and allowing expansion into more lucrative offerings like loans and mortgages.

These challenges reportedly led regulators to realize that Revolut was rectifying various accounting discrepancies and adhering to EU regulations, while also addressing reputational issues attributable to a potentially aggressive corporate culture.

The delays have created some tension with Bank of England Governor Andrew Bailey. Last year, he intervened to prevent discussions initiated by Rachel Reeves regarding concerns that the Chancellor was meddling with the independent regulatory process concerning fintech banking licenses in the UK.

Revolut, which boasts 13 million customers in the UK and was valued at $75 billion (£55 billion) last year, has plans to broaden its banking service offerings to include loans and additional products in the near future.

Nick Stronski, co-founder and CEO of Revolut, noted, “Launching a bank in the UK is a long-term strategic priority for us and a significant milestone in our journey. The UK is our home ground and pivotal to our expansion.”

Since 2024, Revolut has been able to test its banking system with a select group of customers under a restricted banking license, which limited its ability to fully operate and capped customer deposits at £50,000.

The company initially launched as a money transfer and exchange platform in the UK back in 2015 and has since expanded globally, reaching 70 million customers around the world.

Revolut aims to enter 30 new markets by 2030 and recently declared a plan to invest £10 billion into its global operations over the next five years.

Additionally, in September of last year, the company announced intentions to invest £3 billion globally and create 1,000 jobs as part of its UK expansion initiative.