Key Takeaways
- Revolut has been granted full UK banking authorization, regulated by the PRA and FCA
- Customer deposits now qualify for FSCS protection covering up to £120,000 ($160,000)
- Revolut Bank UK Ltd., a newly established entity, will handle banking operations; customer migration starts soon
- Cryptocurrency, equity trading, and commodity services continue under different Revolut divisions
- The fintech has submitted banking license applications in both the United States and Peru
The London-headquartered fintech giant Revolut has officially been awarded full banking authorization in the United Kingdom as of Wednesday. The Prudential Regulation Authority (PRA), which supervises conventional British banks, granted the approval.
To accommodate this new regulatory status, the company established Revolut Bank UK Ltd. as a dedicated legal entity. British customers will transition to this new banking structure through a phased migration process beginning in the upcoming months.
This achievement concludes a lengthy regulatory journey. Revolut initially obtained a restricted banking license in 2024, entering what regulators call a mobilization period—a typical preparatory phase before receiving unrestricted banking permissions.
The account transition will proceed gradually. Customers will receive notification through email or direct app messaging when their individual accounts become eligible for migration.
Following a November funding round, Revolut commands a valuation approaching $75 billion. The platform serves more than 10 million users throughout the United Kingdom.
Understanding the New Deposit Insurance Coverage
With full banking authorization secured, qualifying customer deposits now fall under Financial Services Compensation Scheme (FSCS) protection. This government-backed insurance covers deposits up to £120,000 per individual should the institution encounter failure.
The FSCS operates on principles comparable to America’s FDIC system, which insures deposits up to $250,000. Prior to obtaining this license, Revolut users had no such protection for their primary account balances.
Customers won’t experience disruption to their account numbers, sort codes, or IBAN information throughout the transition. Historical transaction records and statements will remain accessible within the application.
Savings products will maintain their current arrangement with third-party banking partners. These partner institutions provide independent FSCS coverage limits distinct from the newly licensed banking entity.
Digital Assets and Investment Products Stay Under Different Regulation
Cryptocurrency services, equity trading platforms, and commodity offerings will not transfer into the banking entity. These product lines will maintain their current operational structure through distinct Revolut subsidiaries governed by separate regulatory standards.
The newly licensed bank plans to expand into consumer and business lending alongside additional financial products. According to Revolut, this authorization creates opportunities for delivering a “wider range” of banking services.
Revolut submitted an application for federal banking authorization in the United States this past January. Simultaneously, the company filed for banking permissions in Peru.
The American charter application aligns with broader industry momentum as cryptocurrency and fintech enterprises pursue traditional banking credentials. Revolut now belongs to an exclusive group of financial technology companies working toward full banking operations across multiple countries.
This UK regulatory approval represents Revolut’s most significant compliance achievement to date. Complete migration of British customer accounts is anticipated to require several months from start to finish.
