Though Revolut had been granted a UK banking licence back in 2024, it came with restrictions that prevented it from operating as a full-fledged bank, including holding customer deposits above a total of £50,000. It was only able to test its banking operations with a small number of customers under the restrictions, but it is now expected to expand that program within days. Revolut has also been authorised to provide consumer credit services to its UK customers, meaning it can now offer its own credit card.
Nik Storonsky, co-founder and chief executive of Revolut, 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."
How does Revolut work?
Revolut is one of many 'digital banking alternatives', sometimes called 'challenger banks', looking to shift the way that consumers engage with their finances. Along with a raft of other popular companies - including Monzo and Starling - Revolut allows you to set up an account quickly, with no paperwork, and manage everything via its app.
It also does not charge extra for foreign spending or ATM withdrawals (though it does cap both for most customers), offers an eSim feature and launched a Pan-European debit loyalty card programme.
These features have helped Revolut rise as a challenger to more traditional operators and draw in a younger generation of customers. The company was initially launched as a money transfer and exchange platform back in July 2015 by Nikolay Storonsky, a former trader who worked at Lehman Brothers and Credit Suisse, and Vlad Yatsenko, who previously built financial systems at investment banks. The original Revolut prepaid card and app attracted customers by allowing travellers to switch cheaply between currencies, apparently born out of Storonsky’s frustrations with existing foreign exchange products.
The range of products and services Revolut offers has helped it to become Britain's most valuable start-up and secured a £55bn valuation from investors in its 2025 funding round, making it marginally more valuable than Barclays. It now has more than 65 million customers globally, 13 million of whom are in the UK, and its stated ambition is to reach 100 million by 2027 and launch in 30 new markets by 2030.
Why has it taken Revolut five years to get a banking licence?
Most organisations expect a decision from regulators on whether they can operate as a bank within 12 months of applying. This has dragged on for much longer for Revolut in part because it is much bigger than most other applicants. It also faced scrutiny over how it accounts for its turnover, its complicated share structure, past EU regulatory breaches as well as a range of other considerations. These include how money laundering checks have been carried out and concerns about the firm's corporate culture.
How will Revolut change now it has a banking licence?
As a bank, Revolut will now be able to hold deposits for customers and launch its own lending products, including mortgages. Existing customers should expect to be moved over to full current accounts as part of the process.
Lending, especially through mortgage products, tends to be a particularly lucrative income stream for banks and is a major reason why Revolut has continued to push for a full UK banking licence despite the long approval process. Another major motivation ties into reports that the PRA lifting Revolut's licence restrictions will trigger similar approvals around the world, as not having a full banking licence with your home watchdog has been seen as a red flag for some overseas regulators. Revolut's application for a US banking licence is currently being processed, so major foreign expansion could be on the cards in the near future.
As well as reaping the benefits of being a fully licensed bank, Revolut will now have to deal with the restrictions that come with the title. Banks are subject to much greater regulatory scrutiny and expected to do more to serve their customer base, including ensuring appropriate access to cash. How this might change the Revolut experience for customers is yet to be seen, though they will benefit from £120,000 of FSCS protection for the first time.
Is Revolut the best app-only bank?
Revolut may be the biggest, but it is not the only app-based banking option in the UK. There are a whole host of firms offering similar promises to simplify payments and make banking easier by grouping everything you need in one app. You can check out the competition and how we rate each firm in our article 'The best app-only bank in the UK'.
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