Revolut Receives Approval to Launch Fully Licensed UK Bank

Revolut receives approval to launch a fully licensed bank in the UK, enabling protected deposits and expanded financial services.

Fintech company Revolut has received approval to operate as a fully licensed bank in the United Kingdom. The decision comes after regulatory clearance for its subsidiary to start full-fledged banking operations. Moreover, the milestone gives a boost to Revolut’s expansion strategy in its largest market.

UK Regulators Approve Revolut Bank to Begin Full Operations

The approval was given after the Prudential Regulation Authority removed restrictions on the company’s banking license. Revolut Bank UK Ltd is therefore able to leave the regulatory mobilisation phase. This phase normally allows new banks to prepare systems and regulatory requirements.

As a result, the company is now able to provide banking services to retail and business customers. These services are deposit accounts and other financial products. Furthermore, the move clears the way for future lending and more financial services.

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Deposits held in the new bank are to be protected by the Financial Services Compensation Scheme. The program protects eligible deposits to the value of GBP85,000 per customer in case of failure of a bank. Therefore, the protection assures customers transferring the money to the new bank.

Revolut has around 13 million customers in the United Kingdom. The country is the company’s leading market in the world. As a result, opening a licensed bank there helps to support long-term growth plans.

The company also announced an investment plan on a large scale, which is connected to the launch. Revolut intends to invest roughly 3 billion pounds in the United Kingdom. Additionally, the company anticipates producing roughly 1,000 high-skilled jobs in the field of financial technology.

Revolut Begins Gradual Rollout of UK Bank Accounts

The company will start introducing new bank accounts slowly in the next days. At first, the service will only be available to a few customers. Later the rollout will be extended to larger groups in the next few weeks.

This gradual rollout is because it helps to ensure stability and a smooth user experience. Meanwhile, existing Revolut customers will not notice immediate changes. Their mobile applications, cards, and payment services will not experience any interruptions.

However, the customers will receive a notification about migrating to the new bank. The migration process will shift users from the existing to the licensed banking structure. According to the company, the process can take several months to be completed.

Revolut leadership said as an important strategic step. Company co-founder and chief executive, Nik Storonsky, stressed the importance of the market in the United Kingdom. He said the country is key to the company’s global expansion strategy.

Storonsky also described that the company intends to provide a complete set of banking services. These services may include lending products, more sophisticated financial tools and expanded payment capabilities. Therefore, customers could get a wider range of financial solutions.

The development also points to increased competition in digital banking. Fintech companies are increasingly interested in applying for full banking licenses in order to broaden services. By virtue of their regulated banking status, they may compete more directly with traditional financial institutions.

Furthermore, Revolut wants to create what it calls a truly global bank. The company already operates in different regions and markets across the globe. However, the capacity of a licensed UK bank to scale financial services internationally is enhanced.

Overall, the regulatory approval is a significant milestone in the growth journey of Revolut. It allows the fintech company to offer safe deposits and broader banking services. Therefore, the launch could transform the race in the United Kingdom’s digital banking sector.

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