Revolut has been granted a restricted banking licence by the Prudential Regulation Authority, ending a three-year application process that the London-headquartered fintech formally launched in January 2021. The restricted authorisation places Revolut in the mobilisation phase, the standard entry point for new UK banks that must demonstrate full operational readiness before restrictions are lifted and unrestricted deposit-taking may begin.

The restricted licence comes with defined conditions. Total customer deposits held through the new UK banking entity are capped at £50,000 during the mobilisation period. Existing Revolut customers in the United Kingdom continue to be protected through the existing e-money and safeguarding arrangements until the formal bank conversion is complete and restrictions are removed.

THREE YEARS FROM APPLICATION TO AUTHORISATION

Revolut submitted its application for a full UK banking licence in January 2021. Over the intervening period the company faced regulatory enquiry into its accounting practices, corporate governance arrangements, and the composition and suitability of its senior leadership team. Delays in filing audited accounts and questions about the accuracy of reported financial data attracted scrutiny and prolonged the dialogue between the company and the PRA, which maintains responsibility for prudential oversight of deposit-taking institutions.

The licence covers only the United Kingdom. Revolut separately holds a European banking licence granted through its Lithuanian subsidiary, which serves customers across the European Economic Area. A dedicated UK banking entity operating under direct PRA supervision will, once restrictions are lifted, allow the firm to hold UK deposits on its own balance sheet rather than through banking partners. Revolut reports tens of millions of customers globally.

MOBILISATION

Mobilisation is a recognised regulatory mechanism in the UK through which newly authorised banks fulfil outstanding build requirements before operating at scale. During this period the PRA and the Financial Conduct Authority monitor the firm's progress against an agreed set of milestones covering risk management, internal controls, technology resilience, and the adequacy of management information systems. The timetable for exiting mobilisation and obtaining full authorisation is determined by the firm's ability to satisfy those requirements to the regulators' satisfaction.

UK digital banks Monzo and Starling have both completed their mobilisation phases and operate as fully authorised deposit-takers.