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Revolut has said it has secured a full UK banking licence, five years after it first applied to the regulator.
The Bank of England’s Prudential Regulation Authority has reportedly lifted restrictions on Revolut’s banking licence, giving its approval to launch its UK bank.
The digital bank first operated with an e-money licence in the UK, applying for a banking licence in 2021.
The PRA granted the licence with restrictions in 2024 - a standard stage in the process - but the transition to a full licence was held up amid concerns that its risk controls couldn't keep up with its rapid growth.
At the time, Revolut said that the scale and complexity of the business meant it was not ‘rushing to meet a specific date’.
Revolut has approximately 13 million customers in the UK, but without a full licence its banking division has only been able to hold £50,000 in total deposits.
The removal of restrictions will allow it to lend at a greater scale and offer deposit accounts protected by the Financial Services Compensation Scheme (FSCS), allowing it to compete with high street lenders.
Revolut co-founder Nik Storonsky has long pursued a full UK banking licence
Revolut said it would ‘gradually begin the process of rolling out current accounts to new customers in a few days, starting with a small group and expanding over the coming weeks to ensure a smooth user experience.
‘For existing customers, nothing changes immediately, and customers' Revolut app and cards will continue to work as normal.’
It confirms earlier reports in the Financial Times.
Co-founder Nik Storonsky said: ‘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.
‘We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe. This is a vital step in our mission to build the world’s first truly global bank.’
The digital bank has already secured banking licences in the European Union, through the central bank of Lithuania, and in Mexico. It has also been given the green light to set up a bank in Colombia, but further approvals are needed before it can start lending.
It has also set its eyes on the US, with previous reports suggesting that Revolut was weighing up buying an American lender to allow it to operate there.
Last week, it made a second attempt to secure a US licence, filing for a US bank charter as it named a new boss for the region.
Storonsky said it was a ‘major milestone’ in its vision of building the ‘first truly global banking platform’.
‘This charter will give us the direct control needed to innovate faster and deliver the Revolut experience to millions more Americans as we move toward our goal of 100 million customers,’ he added.
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