Revolut has reportedly been set to obtain its full UK banking licence from the Prudential Regulation Authority (PRA) as early as this week, according to a source cited by Bloomberg.
The receipt of the authorisation would end a licensing process that the company first initiated in 2021 and enable it to further advance its expansion plans.
The UK-based fintech entered the mobilisation stage, a transitional phase during which new banks operate under restrictions while the PRA assesses their readiness, in July 2024. During this period, Revolut's banking subsidiary has been permitted to test its systems with a limited number of customers, while the majority of its 12 million UK users remained within its e-money institution, regulated separately by the Financial Conduct Authority (FCA). The mobilisation phase typically lasts no more than 12 months, but Revolut's process extended beyond 19 months, reflecting the complexity of authorising a firm of its scale.
At the time of writing, the PRA declined to comment, while Revolut did not respond to requests to expand on the matter at hand.
Lending, deposit protection, and global implications
Full authorisation will allow Revolut to offer lending products to UK customers, including personal loans, credit cards, and overdraft facilities, that the company already provides in Europe under licences from the Lithuanian and European central banks. Additionally, UK customers will also become eligible for coverage under the Financial Services Compensation Scheme, which protects deposits of up to GBP 120,000 in the event of a bank failure.
The licence is also expected to remove a significant obstacle to Revolut's international expansion. The PRA's extended review had been affecting the company's applications for authorisation in other markets, most notably the US, where Revolut has applied for a national bank charter with the OCC and is targeting growth in 2026 as part of its goal to reach 100 million users across 100 markets.
CEO Nik Storonsky had identified securing the UK licence as the company's primary strategic priority, and has acknowledged that the company's early approach of prioritising growth over regulatory compliance was a mistake. Revolut, valued at USD 75 billion, has also received investment from Nvidia and entered a partnership with OpenAI. The company is additionally weighing a potential stock market listing in the UK or elsewhere.
For more in-depth information about Revolut's road to secure the licence, you can read our 'Revolut's UK licence delay: caution or stagnation?' editorial piece.
