- Revolut obtained a full UK banking license and will shift customers to Revolut Bank UK Ltd., bringing FSCS protection up to £120,000
- Core account details and app features stay the same, while savings, crypto, commodities and stock services remain outside the new bank entity
Revolut has secured a full U.K. banking license, marking a significant shift in how the London-based fintech operates and how its customers’ deposits are protected. The move comes almost two years after the firm entered the U.K. banking regime with a restricted registration and follows a rapid rise in valuation and expansion plans that include an application for a U.S. banking license.
Revolut gains full U.K. banking status
The company announced that it has obtained authorization to operate as a fully licensed bank in the U.K., supervised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). These are the same regulators that oversee long-established U.K. banks. Revolut had previously been in a mobilization phase after receiving a restricted license in 2024, a stage intended to help new banks build systems and meet regulatory requirements before full approval is granted.
In November, Revolut was valued at about $75 billion in a funding round, underscoring its position among leading fintech firms. The new banking license in its home market completes a regulatory process that began years earlier, aligning the firm’s core retail banking operations with the standard U.K. framework for deposit-taking institutions. The approval also comes soon after Revolut submitted an application for a banking license in the United States, signaling that it is pursuing a similar regulatory path in another major market.
To operate under the new authorization, the company has created a dedicated banking entity named Revolut Bank UK Ltd. Existing customers will be moved to this entity in the coming months. The migration will not happen all at once; instead, accounts will be transferred in phases to manage operational changes and regulatory obligations.
Deposit protection and customer account changes
One of the main implications of the new license is deposit protection for eligible funds. Once customers are moved to Revolut Bank UK Ltd., qualifying balances will be covered by the Financial Services Compensation Scheme (FSCS). This scheme provides protection of up to £120,000 (equivalent to $160,000) per person if a bank fails, bringing Revolut into line with protections offered by traditional U.K. banks.
The firm has said that customers will receive notifications when their accounts are ready to transition. These notices will arrive either by email or through messages within the Revolut app, allowing users to track the progress of the migration and understand when FSCS coverage applies to their deposits. The staged process is designed so that customers remain informed and can continue to use their accounts without interruption.
Revolut has indicated that the core banking experience will look familiar even after accounts are moved to the new entity. Key details such as account numbers, sort codes and IBAN information will stay the same, reducing the need for customers to update payment instructions with employers or counterparties. Historical data, including past transactions and account statements, will continue to be visible within the app. Day-to-day features, from card payments to transfers, are expected to function as before, even as the regulatory status of the underlying account changes.
Services remaining outside the Revolut bank license
Despite the shift to a fully licensed bank for core accounts, not all of Revolut’s products will fall under Revolut Bank UK Ltd. The firm has confirmed that certain activities will continue to be provided by separate entities or partner institutions. Savings products are one example: balances in these accounts will still be held with partner banks, each of which has its own FSCS coverage limits. As a result, customers using savings tools will need to be aware that FSCS protection may apply through different banks, not solely through Revolut’s own license.
Revolut’s broader investment and trading services will also remain outside the new banking entity. Crypto trading, commodities offerings and stock-investment features will continue to operate through distinct Revolut entities rather than through Revolut Bank UK Ltd. This separation reflects the different regulatory treatment of these activities compared with traditional deposit-taking and payment services. Customers using these products will therefore engage with Revolut under a different legal and regulatory setup than the one that applies to insured bank deposits.
Conclusion
Revolut’s move from a restricted U.K. banking license to full authorization under the PRA and FCA places its main banking operations on the same regulatory footing as established U.K. banks and extends FSCS protection of up to £120,000 for eligible deposits once accounts are migrated to Revolut Bank UK Ltd. While everyday account details and app functionality will largely remain unchanged, savings, crypto, commodities and stock services will continue to sit outside the new bank entity, preserving a split between insured deposits and other financial products as the company advances its expansion strategy.
Disclaimer
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