Digital banking giant Revolut has officially launched its UK bank after receiving regulatory approval from the Prudential Regulation Authority (PRA). This marks an important milestone in the fintech company’s long-standing ambition to establish itself as a fully licensed bank in its home market.
The new company, Revolut Bank UK Ltd, will gradually begin rolling out current accounts to customers, initially to a limited group before expanding to the company’s 13 million UK users in the coming weeks.
The approval allows Revolut to exit the “mobilization phase” of its banking license, the period during which a company prepares operational systems and governance before offering full banking services.
For the first time, Revolut customers in the UK will be able to hold deposits protected by the Financial Services Compensation Scheme (FSCS), which protects eligible deposits of up to £85,000 per person.
The creation of the UK bank will enable Revolut to offer deposit accounts with FSCS protection, putting the company into greater competition with established high street lenders and digital challenger banks.
While Revolut has been operating in the UK since 2015 and has built one of the largest fintech customer bases in the country, the company previously operated under an e-money license, which meant deposits were protected but not covered by the FSCS guarantee.
The transition to a licensed bank also opens the door to a broader range of services, including loan products, credit offerings and expanded financial services for retail and business customers.
However, Revolut has stressed that the rollout will be gradual to ensure a smooth transition.
New customers are initially offered the bank’s current accounts; existing users continue to use the app and payment services as usual until the account is migrated.
The company expects the migration of existing customers to take several months, with notifications being sent via the Revolut app during the transition period.
Nik Storonsky, co-founder and CEO of Revolut, described the launch as a pivotal moment for the company’s global ambitions.
“The launch of our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey,” he said.
“The UK is our home market and central to our growth. We look forward to offering a full range of banking services to our millions of British customers and giving them the same innovative experience we already offer across the rest of Europe.”
Storonsky added that the development represents a major step toward the company’s long-term goal of creating “the world’s first truly global bank.”
The approval of the banking license comes shortly after Revolut announced plans to invest 3 billion pounds ($4 billion) in the British economy and create around 1,000 high-skilled jobs as part of its expansion strategy.
The company has also unveiled an ambitious global investment program worth 10 billion pounds ($13 billion) over five years that will support international growth and the introduction of banking services in additional markets.
As part of this strategy, Revolut plans to enter 30 new markets by 2030, with licensing progress already underway in parts of the Americas and other regions.
The fintech group has become one of Europe’s fastest-growing financial technology companies, offering services such as international payments, investment tools, cryptocurrency trading and budgeting features through its mobile app.
Francesca Carlesi, managing director of Revolut UK, said the regulatory approval was a crucial step in the company’s development.
“Becoming a bank in our home market marks a pivotal moment in our journey – a milestone achieved through relentless focus, discipline and belief in what we are building,” she said.
“Securing this license lays the foundation for our next chapter: expanding to a broader range of products, including credit, to complement the innovative services our customers already rely on every day.”
Carlesi added that the launch will help Revolut continue its mission to “provide consumers across the UK with the most seamless, secure and customer-focused banking experience.”
Revolut’s transition to a fully licensed UK bank is likely to intensify competition across the UK financial services sector, particularly between digital challenger banks such as Monzo and Starling.
With millions of existing customers already using the app for payments and financial services, Revolut is entering the banking market with a significant user base that could quickly adopt its new FSCS-protected accounts and future lending products.
The company’s move also reflects a broader shift within the fintech industry, as many technology-driven financial firms seek full banking licenses to expand their services and increase customer trust.
For Revolut, gaining approval in its largest market represents both a regulatory breakthrough and a key step in its quest to become a global digital banking powerhouse.
