Revolut secures UK banking licence after four-year approval process

Deposits held with the new bank will be protected under the Financial Services Compensation Scheme (FSCC).

The protection gives customers the same safeguards available to account holders at traditional high street banks.

The licence also allows Revolut to expand into lending products in the UK market.

The development represents a shift for the company, which first gained prominence as a payments and currency exchange platform.

The Prudential Regulation Authority lifted restrictions attached to an authorisation it had previously granted two years earlier, the company confirmed on Wednesday.

Nik Storonsky, co-founder and chief executive of Revolut, described the approval as a major milestone for the business.

Mr Storonsky said: "Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey."

He added that the UK remains central to the company's expansion plans.

Mr Storonsky said: "The UK is our home market and central to our growth."

The chief executive said the company intends to provide British customers with the same services already offered in other European markets.

"We are excited to bring more innovative products and services to our UK customers."

He added: "This is a vital step in our mission to build the world's first truly global bank."

Revolut already operates with a banking licence issued in Lithuania.

That licence has enabled the company to provide banking services across the European Union.

However, securing a full UK licence has taken longer than is typical for most lenders.

During the regulatory process Revolut entered a mobilisation phase that limited the scale of deposits its UK banking arm could hold.

The company was permitted to accept only £50,000 in total deposits during this stage.

Most lenders complete mobilisation within about 12 months.

Revolut had remained in that phase since July 2024, with the delay partly attributed to the company's size and complexity.

The prolonged process drew attention from senior figures in Government.

Chancellor Rachel Reeves attempted to arrange discussions between Revolut and officials from the Prudential Regulation Authority last year.

Bank of England governor Andrew Bailey blocked the proposed intervention.

Mr Bailey reportedly argued that such involvement could undermine the independence of the regulatory process.

Regulators in other countries were also expected to rely heavily on the assessment conducted by the UK authority as Revolut's home regulator.

Revolut was valued at $75billion during its most recent funding round last year.

Technology company Nvidia was among the investors backing the fintech.

The valuation placed Revolut ahead of Barclays in terms of market value.

The company has grown rapidly in recent years, attracting millions of users through its mobile banking application and digital services.

Its expansion has increased competition for established banks including Barclays and NatWest.

Barclays chief executive CS Venkatakrishnan previously suggested that Revolut benefited from operating in the UK without a full banking licence.

He said the arrangement meant the company was not subject to some of the obligations faced by fully regulated lenders.

Revolut has also received authorisation from the Financial Conduct Authority (FCA) to offer consumer credit products.

That approval could allow the company to introduce a credit card for customers in the UK market.

The fintech confirmed last week that it has also applied for a banking licence in the United States.

The application marks another step in the company's efforts to expand its global banking operations.