Revolut Gains Full UK Banking License

The UK's Prudential Regulation Authority (PRA) has lifted restrictions on Revolut's banking license, allowing the company to operate as a fully licensed bank in the United Kingdom. This milestone comes nearly two years after the company received its initial restricted registration. Revolut has established a new legal entity — Revolut Bank UK Ltd.

What the Full License Means

The primary benefit for customers is deposit protection through the Financial Services Compensation Scheme (FSCS). Eligible deposits are now insured up to 120,000 GBP (approximately $160,000). This places Revolut on equal footing with traditional British banks in terms of customer fund protection.

The company will also be able to offer a broader range of banking products, including personal loans and mortgages. Migration of existing customer accounts to the new banking platform will occur gradually over the coming months.

Crypto Services Remain Separate

An important distinction — cryptocurrency trading, commodity, and stock services will continue to operate through separate Revolut entities within the same app. These services are not covered by FSCS protection and remain outside the scope of banking regulation.

This separation aligns with the approach of most regulators, who require clear delineation between cryptocurrency operations and traditional banking services to protect depositors.

Investments and Stablecoins

Alongside the license approval, Revolut announced plans to invest 3 billion GBP ($4B) in the UK economy and create 1,000 high-skilled jobs. These commitments demonstrate the company's long-term plans for the British market.

Additionally, the Financial Conduct Authority (FCA) selected Revolut to participate in a regulatory sandbox testing fiat-pegged stablecoins. This could open new opportunities for the company at the intersection of traditional finance and cryptocurrencies.

Significance for the Fintech Industry

Obtaining a full banking license marks a turning point not only for Revolut but for the entire fintech sector. A company that started as a currency exchange and crypto trading app now competes directly with the largest banks in the United Kingdom — Barclays, HSBC, and Lloyds.

For Ukrainian users who actively use Revolut for international transfers and foreign currency savings, the full banking license means an additional layer of protection and reliability.

Next Steps

Revolut plans to gradually migrate all UK customers to the new banking platform. The company continues working on obtaining banking licenses in other jurisdictions, steadily transforming from a fintech startup into a global digital bank. Analysts expect that success in the UK will accelerate similar processes in the EU and other regions.