What does it mean for customers when Revolut obtains a full UK banking license?

After battling for regulatory approval for four years, Revolut is now an official bank in the United Kingdom

What effects will the change have on consumers, and is Revolut a good place to put your money?

After a four-year battle with authorities, fintech behemoth Revolut has finally been granted a full UK banking license, allowing it to begin providing current accounts, savings accounts, loans, mortgages, and business accounts.

The Financial Services Compensation Scheme (FSCS) will also apply to Revolut.

Revolut was classified as an Electronic Money Institution (EMI) rather than a bank, despite the fact that its 13 million UK clients could deposit and spend money through the company. In 2024, it received a restricted UK banking license.

The article goes on below.

Try six BFIA free issues right now.

Gain unmatched financial knowledge, analysis, and professional advice that will benefit you.

Start your trial, but now that the British fintech has a full banking license in the UK, Revolut is anticipated to upend the market and give high street providers and other neo-banks like Monzo more competition.

The Competition and Markets Authority recently ranked Monzo as one of the most well-liked banks. However, CEO Nik Storonsky stated in September that Revolut may look to compete as it aims for 100 million users by 2027 and hopes to create over 1,000 jobs.

Co-founder Storonsky stated that the UK bank's launch "marks a significant moment in our journey." A "

"Our home market, the UK, is essential to our expansion. We are eager to offer our millions of UK clients a comprehensive range of banking services, delivering the same cutting-edge experience we currently offer throughout the rest of Europe. In our quest to create the first truly global bank in history, this is an essential step. The "

Revolut claims that current customers won't experience any immediate changes as a result of the license being granted; their cards and accounts will continue to function normally.

The company anticipates that the process of moving all accounts to the new bank will take "a few months," and clients will be informed of how it operates.

Having a banking license gives Revolut the ability to grow its business and provide its clients with new goods.

It specifically states that the license "paves the way for a wider range of services in the future, including lending and other products." A "

The license will enable the company to grow into a wider range of products, including credit, according to Francesca Carlesi, CEO of Revolut in the UK.

Chancellor Rachel Reeves also applauded the licence's issuance, praising Revolut's prior pledge to invest £3 billion in its UK operations and add 1,000 jobs.

Why wasn't Revolut a complete bank in the UK?

Since its founding in the UK in 2015, Revolut's popularity has skyrocketed throughout the EU and Britain.

The company has 13 million customers in the UK alone, where its headquarters are located, and it was recently valued at £75 billion.

However, as it battled regulators, the fintech was operating without a full UK banking licence despite its popularity.

It applied for a license for the first time in 2021, and in 2024 it was granted a restricted banking license, which it has been using ever since.

This marked the start of its "mobilization phase," which limited its total customer deposits to a maximum of 50,000. It typically takes less than a year to mature out of this stage, but it took until March 11, 2026.

The Bank of England's Prudential Regulation Authority (PRA), which oversees lenders, has now removed these limitations.

Since Revolut is now a UK bank, what will change?

Revolut will gradually transfer customer accounts to it now that it has obtained its UK banking licence.

They claim that nothing will change right away for current users, as the Revolut app and cards will still function normally.

Revolut anticipates that the migration process will take "a few months in total" as they move accounts in several phased batches, and all current customers will be informed of this.

In order to guarantee a seamless user experience, the bank announced on March 11 that it would start rolling out current accounts "in a few days," "starting with a small group and expanding over the coming weeks." A "

They point out that clients who sign up starting on March 11, 2026, might still be onboarded onto an EMI account with Revolut Ltd. rather than the entire bank account. The account will be transferred to the bank concurrently with other accounts if this occurs.

It further states that both retail and business clients will be able to open accounts with Revolut Bank UK Ltd.

Following the completion of the migration process, customer funds will be safeguarded by the FSCS, which protects up to £120,000 in customer deposits in the event that a financial institution fails.

Check out our interview with Revolut Trading CEO Yana Shkrebenkova on our podcast, BFIA Talks.

You can watch Yana Shkrebenkova, Revolut Trading | BFIA | YouTube.