Revolut secures full UK banking license – what does it mean for customers?

Fintech giant Revolut has finally received a full UK banking licence after a four-year tussle with regulators, meaning it can start offering current accounts, savings, loans and mortgages as well as business accounts.

It also means Revolut will be covered by the Financial Services Compensation Scheme (FSCS).

While its 13 million UK customers were previously able to deposit and spend money through the firm, Revolut was not yet technically a bank – instead, it was categorised as an Electronic Money Institution (EMI). It was granted a UK banking licence in 2024, but with restrictions.

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But now that the British fintech has a full UK banking licence, Revolut is expected to shake up the market, adding competition to high street providers and other neo-banks like Monzo.

Monzo was recently listed as one of the most popular banks by the Competition and Markets Authority. But Revolut may look to compete as it looks to create over 1,000 jobs and is aiming for 100 million users by 2027, CEO Nik Storonsky said in September.

Storonsky, who is also the co-founder, said launching the UK bank “marks a significant moment in our journey.”

“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.”

For existing consumers, Revolut says the granting of the licence will not change anything immediately, with accounts and cards continuing to work as usual.

All accounts will be migrated to the new bank, a process which the firm expects to take “a few months”, and customers will be told how the process works.

For Revolut itself, having a banking licence opens up opportunities for it to expand its operations and offer new products to its customers.

In particular, it says the licence “paves the way for a wider range of services in the future, including lending and other products.”

Francesca Carlesi, UK CEO at Revolut, added that the licence will allow the firm to expand into a broader suite of products, including credit.

The granting of the licence was also celebrated by chancellor Rachel Reeves, who welcomed Revolut’s earlier commitment to invest £3 billion in its UK operation and create 1,000 more jobs.

Why was Revolut not a full UK bank?

Revolut was founded in the UK in 2015 and has since exploded in popularity across Britain and the EU.

In the UK alone, where the firm is headquartered, it has 13 million customers and recently achieved a valuation of $75 billion.

But despite its popularity, the fintech had been operating without a full UK banking licence as it sparred with regulators.

It first applied for the licence in 2021 and was given a restricted banking licence in 2024, which it has operated under since.

That began its “mobilisation phase”, allowing it to hold a maximum of just £50,000 in total customer deposits. Maturing out of this phase usually takes under 12 months, but the process dragged on until 11 March 2026.

These restrictions have now been lifted by the Bank of England’s Prudential Regulation Authority (PRA), which regulates lenders.

What will change now Revolut is a UK bank?

Now Revolut has received its UK banking licence, customer accounts will gradually be migrated to it.

They say that for existing customers, nothing will change immediately with the Revolut app and cards continuing to work as normal.

All existing customers will be notified about the migration process, which Revolut expects to take “a few months in total” as they move accounts in several phased batches.

As for new customers, the bank said on 11 March it will begin the process of rolling out current accounts “in a few days”, “starting with a small group and expanding over the coming weeks to ensure a smooth user experience.”

They note that customers signing up from 11 March 2026 onwards may still be onboarded onto an EMI account with Revolut Ltd instead of the full bank account. If this happens, the account will be migrated to the Bank at the same time as existing accounts.

It adds that Revolut Bank UK Ltd will be able to offer accounts for both retail and business customers.

Once the migration process is complete, customer cash will become protected by the FSCS, which shields up to £120,000 in customer deposits compensation for customers if a financial institution goes out of business.

Listen to our interview with Yana Shkrebenkova, CEO of Revolut Trading, on our podcast MoneyWeek Talks.

Yana Shkrebenkova, Revolut Trading | MoneyWeek - YouTube

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