Revolut wins UK bank licence, plans major investment push

Revolut has received approval from the Prudential Regulation Authority to exit the UK banking mobilisation phase, clearing the way for Revolut Bank UK to operate as a fully licensed bank.

The approval lifts mobilisation restrictions and allows Revolut Bank UK to begin offering bank accounts to retail and business customers. The roll-out will start with new customers and expand in stages over the coming weeks.

Revolut has 13 million customers in the UK. Eligible deposits held in deposit accounts at Revolut Bank UK will be protected by the Financial Services Compensation Scheme (FSCS).

Gradual roll-out

Current accounts will be introduced gradually, starting with a small group of new customers, with access widening over the following weeks. Existing customers will not see an immediate change, and their app experience and cards will continue to work as normal.

Customers will be notified about a migration process to move accounts to the bank. Revolut expects this to take a few months, with customers transferred in phased batches. It will also provide at least two months' notice before moving existing customer accounts, following standard terms-and-conditions processes.

During the early phase, some new customers may still be onboarded to an electronic money account rather than directly to Revolut Bank UK. Revolut expects onboarding to the bank to increase over time. Customers will be told which entity they are signing up to through the terms and conditions during onboarding.

Services and protection

The move allows Revolut to offer accounts as a licensed UK bank, rather than operating solely under electronic money permissions for those services. Deposit accounts at the bank will carry FSCS protection for eligible deposits, replacing the safeguarding model used for electronic money accounts.

The UK bank launch also opens the way for a wider range of services over time, including lending and other products, though Revolut did not provide a timetable.

"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. 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," said Nik Storonsky, Co-founder and CEO.

UK Chief Executive Francesca Carlesi said the approval set the groundwork for the next stage of product expansion in the UK.

"Becoming a bank in our home market marks a defining moment in our journey - a milestone achieved through relentless focus, discipline, and belief in what we're building. Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day. This will now enable us to continue on our mission to deliver the most seamless, secure, and customer-centric banking experience for consumers across the UK," Carlesi said.

Investment and jobs

The banking launch comes as Revolut points to a broader investment and hiring plan in the UK. It plans to invest GBP £3 billion and create 1,000 high-skilled jobs in the country.

Revolut also outlined a wider global expansion agenda, including a GBP £10 billion investment plan over five years and plans to create 10,000 new jobs as it expands internationally. It is working towards launching in 30 new markets by 2030, and cited licensing announcements in the Americas and expansion progress in other regions.

Australian read-across

Executives in other markets framed the UK approval as a signal of the group's broader ambitions, including in Australia, where Revolut has more than one million local customers, according to the company.

"The launch of Revolut Bank UK is a watershed moment for the group and a powerful validation of our global ambition to build the world's first truly global bank. This achievement in our home market provides a clear blueprint for what we are working to deliver right here for Australians. After reaching profitability in Australia last year and having recently surpassed one million local customers, we've proven that there is a deep-seated appetite for a genuine digital alternative to the status quo," said Matt Baxby, CEO, Revolut Australia.

"This is why we've committed to investing almost AUD$400 million in our Australian business over the next five years. Whilst we can't comment on regulatory processes or timelines, our rationale for applying for a bank licence in Australia has not changed - to build unwavering trust with our customers, unlock new products and services. Ultimately, we're building an app that removes friction from finance, enabling Australians to effortlessly manage their entire financial life in one place," Baxby added.

In the UK, Revolut said customers will receive updates as the phased migration begins, while new current-account onboarding expands over the coming weeks.