Digital banking giant Revolut has officially launched its UK bank after receiving regulatory approval from the Prudential Regulation Authority (PRA), marking a major milestone in the fintech company's long-running effort to establish itself as a fully licensed bank in its home market.
The new entity, Revolut Bank UK Limited, will gradually launch current accounts for customers, starting with 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 have deposits protected by the Financial Services Compensation Scheme (FSCS), which protects eligible deposits up to £85,000 per person.
The launch of the UK bank has enabled Revolut to begin offering deposit accounts with FSCS protection, putting it in closer competition with established high-street lenders and digital challenger banks.
While Revolut has operated in the UK since 2015 and built one of the largest fintech customer bases in the country, it previously operated using an e-money license, meaning deposits were safe but not covered by FSCS guarantees.
The transition to a licensed bank also opens the door to a wider range of services, including lending products, credit offerings and extended financial services for both retail and business customers.
However, Revolut has stressed that the rollout will be gradual to ensure a smooth transition.
Initially, new customers will be offered the bank's current accounts, while existing users will continue to use the app and payment services as normal until their accounts are transferred.
The company expects the migration of existing customers to take several months, with notifications to be sent through the Revolut app during the transition period.
Revolut co-founder and chief executive Nick Storonsky called the launch an important moment for the company's global ambitions.
“Launching our UK bank has been a long-term strategic priority for Revolut and this is an important moment in our journey,” he said.
“The UK is our home market and the center of our growth. We look forward to offering a full suite of banking services to our millions of UK customers, bringing the same innovative experiences we are already providing to the rest of Europe.”
Storonsky said 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 ($4 billion) in the UK 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 of £10 billion ($13 billion) over five years, which will support international growth and the launch of banking services in additional markets.
As part of that strategy, Revolut plans to enter 30 new markets by 2030, with licensing progress already underway in parts of the US and other regions.
The fintech group has become one of Europe's fastest-growing financial technology firms, offering services including international payments, investment tools, cryptocurrency trading and budgeting features through its mobile app.
Francesca Carlesi, chief executive of Revolut UK, said the regulatory approval represents a decisive step in the company's development.
“Becoming a bank in our home market is a defining moment in our journey – a milestone achieved through sustained focus, discipline and belief in what we are building,” he said.
“Securing this license lays the foundation for our next chapter: expanding into a broader suite of products, including credit, sitting alongside the innovative services our customers already rely on every day.”
Carlesi said the launch will help Revolut continue its mission to provide “the most seamless, secure and customer-centric banking experience for consumers across the UK”.
Revolut's transformation into a fully licensed UK bank is likely to intensify competition in the UK financial services sector, particularly among digital challenger banks such as Monzo and Starling.
With millions of existing customers already using its apps for payments and financial services, Revolut enters the banking market with a substantial user base that can rapidly adopt its new FSCS-protected accounts and future loan products.
The company's move also reflects a broader shift within the fintech industry, as many technology-driven financial companies seek full banking licenses to expand their services and strengthen customer trust.
For Revolut, gaining approval in its largest market represents both a regulatory success and an important step in its ambitions to become a global digital banking powerhouse.
Amy Ingham
Amy is a newly qualified journalist specializing in business journalism with responsibility for news content at Business Matters, the UK's largest print and online source of current business news.