Revolut has been given the green light by the Prudential Regulation Authority (PRA) to exit the mobilisation phase following confirmation it has met requirements to function as a compliant UK bank. 

Revolut applied for its license four years ago, and during this lengthy process has been operating as an e-money institution in the UK. Its authorisation to operate as a UK bank follows a three year wait for a banking license and two years in mobilisation. 

The PRA granted the licence with restrictions in 2024, as is standard practise, but delayed granting full permissions to ensure Revolut could maintain risk controls amid their expeditious growth.

These limitations meant that Revolut could only manage deposits of up to £50,000 and could not provide lending, potentially limiting the speed and scale of their growth. 

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The move from fintech to challenger bank will enable Revolut to offer deposit accounts protected by the Financial Services Compensation Scheme and compete with the high street lenders. 

The bank has already been successfully operating across a number of European Union regions, but can now offer licensed bank accounts to its growing UK customer base. 

Currently, Revolut is used by 13 million users in the UK, and will start rolling out its new accounts and offerings to its users in the coming days. The priority for Revolut, in the short term, is managing the gradual roll out of their new features to ensure a positive and smooth experience for customers. 

While this is great news for Revolut, it may also bring broader benefits for the UK following commitments from Revolut to invest £3 billion and create 1,000 new high-skilled jobs from its London headquarters.

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Revolut’s co-founder and chief executive, Nik Storonsky, said that this has been a long-term strategic priority, “The UK is our home market and central to our growth. We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe. This is a vital step in our mission to build the world’s first truly global bank.”

Whilst today’s news marks a pivotal development in the organisation’s business journey, Revolut are not showing signs of slowing down, with ambitious plans to enter 30 new markets by 2030. Attempts to secure a US bank charter are ongoing, opening up access to numbers of customers on a scale that Revolut has never experienced before.

UK CEO Francesca Carlesi added: “Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day. This will now enable us to continue on our mission to deliver the most seamless, secure, and customer-centric banking experience for consumers across the UK.”