Key Highlights
- Revolut obtained unrestricted UK banking authorization under PRA and FCA supervision
- Customer deposits qualifying for protection receive FSCS coverage up to £120,000 ($160,000)
- Revolut Bank UK Ltd. represents the newly established entity; customer transfers commence in upcoming months
- Stock trading, commodities, and crypto services continue operating through distinct Revolut entities
- Banking license applications have been submitted in Peru and the United States
The London-headquartered fintech firm Revolut obtained its unrestricted UK banking authorization on Wednesday. The Prudential Regulation Authority (PRA), which provides oversight for established UK financial institutions, granted the approval.
Revolut Bank UK Ltd. serves as the newly formed entity designated to operate under this license. UK-based customers will transition to the updated account framework during the months ahead.
This development concludes a multi-year authorization journey. Revolut obtained conditional UK licensing in 2024, followed by a mobilization period—a typical preparatory stage preceding complete authorization for emerging banks.
Account transitions will occur in phases. Customers receive notification via email or application alerts once their specific account qualifies for transfer.
Following a November funding round, Revolut carries an approximate valuation of $75 billion. The platform serves more than 10 million customers across the UK.
FSCS Protection for Customer Deposits
Qualifying customer deposits receive Financial Services Compensation Scheme (FSCS) protection under the updated licensing arrangement. Coverage extends to £120,000 per individual in scenarios where the banking institution experiences failure.
The FSCS operates with similar principles to the United States’ FDIC system, which safeguards American bank deposits up to $250,000. Prior to receiving this authorization, Revolut users held primary balances without this protective coverage.
IBAN details, sort codes, and account numbers remain unchanged throughout the transition process. Transaction histories and previous statements maintain accessibility within the application.
Savings deposits continue placement with affiliated banking institutions. Individual partner banks maintain distinct FSCS coverage thresholds, operating independently from the newly licensed banking entity.
Trading Services Operate Through Separate Entities
Commodities, stock trading, and crypto services will continue operating outside the banking entity structure. These offerings remain under distinct Revolut entities governed by alternative regulatory frameworks.
The newly authorized bank plans expansion into lending services and additional financial products over time. According to Revolut, the licensing approval establishes groundwork for a “wider range” of customer offerings.
Revolut submitted a federal banking charter application in the United States during January. A concurrent application for Peruvian banking authorization was filed during the same period.
The American charter submission aligns with broader industry patterns as fintech and crypto companies pursue conventional banking credentials. Revolut enters a select group of fintech firms working toward full banking operations spanning multiple regulatory jurisdictions.
The UK authorization represents Revolut’s most significant regulatory achievement thus far. Complete transition of UK customer accounts toward the new structure requires several months to finalize.
