The approval follows an earlier decision in 2024 when regulators granted the company a UK banking licence with restrictions after it submitted its application in 2021….reports Asian Lite News
Revolut has finally secured approval to operate as a fully fledged bank in the United Kingdom, ending a five-year wait for regulatory clearance.
The fintech company confirmed it has received the green light from the Prudential Regulation Authority (PRA), enabling it to launch full banking services for retail and business customers. Revolut said it will begin rolling out current accounts to a small group of new customers within days as it gradually expands its banking operations.
The approval follows an earlier decision in 2024 when regulators granted the company a UK banking licence with restrictions after it submitted its application in 2021. Under those conditions, Revolut was allowed to test its banking systems with a limited number of users but was not permitted to hold customer deposits above £50,000 in total.
According to The Guardian, Revolut executives had grown increasingly frustrated with the pace of the regulatory process. UK authorities reportedly sought assurances that the company had addressed a range of concerns, including accounting issues, regulatory breaches in the European Union, and reputational questions related to its corporate culture.
The delays also created tensions within the UK financial establishment. The Guardian reported that Bank of England governor Andrew Bailey intervened last year to block a meeting that Chancellor Rachel Reeves attempted to arrange between regulators and Revolut, amid concerns about political interference in the independent licensing process.
Revolut, which launched in the UK in 2015 as a money transfer and foreign exchange service, has since expanded rapidly worldwide and now serves about 70 million customers globally, including 13 million in the UK. The company was valued at $75bn (£55bn) last year.
Co-founder and chief executive Nik Storonsky said obtaining the licence marked a major milestone, describing the UK as the firm’s “home market” and a key driver of future growth. Revolut plans to expand into lending and other financial products while targeting launches in 30 new markets by 2030.
UK chief executive Francesca Carlesi said the licence marked a major step in the company’s development in Britain.
She said the approval would allow the firm to expand its product offering beyond its existing services and introduce new financial products, including credit options, while continuing to develop its digital banking platform.
The company has recently pledged significant investment in the UK economy, including plans to invest £3 billion and create around 1,000 skilled jobs.
Revolut also outlined broader global expansion ambitions. The fintech group said it intends to invest £10 billion worldwide and create 10,000 jobs as part of a strategy to enter around 30 new markets by 2030.
As part of its international growth plans, the company has applied for banking licences in several countries, including the United States and Peru.
The announcement comes as the company completes a secondary share sale that values Revolut at around $75 billion, representing a 66% increase compared with its valuation in 2024.
The UK licence is seen as a significant achievement for the fintech firm, which has grown rapidly since its launch as a digital payments app. With full regulatory approval now secured, the company is expected to expand its range of services in the UK and compete more directly with traditional banks.
