British fintech Revolut gets full banking licence

Group lodged application in 2021 but had to overcome accounting issues and reputational concerns

Revolut can finally launch as a fully-fledged UK bank after a five-year wait for regulatory approval.

The fintech said it has received the all-clear from the Prudential Regulation Authority (PRA) for a full banking licence, allowing it to offer accounts for retail and business customers.

It will start rolling out current accounts to a small number of new customers within days, the group said.

The move follows Revolut being granted a UK banking licence – with “restrictions” – in 2024, having first lodged its application in 2021.

Revolut bosses were said to have grown frustrated with UK regulators, who had been slow to grant a full licence allowing it to hold customer deposits and branch out into more lucrative products such as loans and mortgages.

The challenge was reportedly, in part, convincing regulators that Revolut had addressed a number of accounting issues and EU regulatory breaches, as well as reputational concerns, including an over-aggressive corporate culture.

The delays led to tensions in the City with Andrew Bailey, the governor of the Bank of England, who stepped in to block a meeting that Rachel Reeves tried to secure with watchdogs and Revolut last year, amid concerns the chancellor was meddling in an independent process over the fintech’s UK banking licence.

Revolut – which boasts 13 million customers in the UK and was valued at $75bn (£55bn) last year – plans to offer a wider array of banking services in the future, such as lending and other products.

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.”

Since 2024, Revolut has been allowed to test its banking systems with a small number of customers through the restricted banking licence, meaning it has not been able to fully operate as a bank and hold customer deposits above a total of £50,000.

It first launched in the UK in 2015 as a money transfer and exchange and it has since grown globally, with 70 million customers worldwide.

The group has a target of launching in 30 new markets by 2030, and recently announced a £10bn investment across its global operations over the next five years.

Last September, Revolut unveiled plans to put £3bn of global investment into its UK expansion and create 1,000 jobs.