Revolut gets full license approval from UK

Core Viewpoint - Revolut has received approval to operate as a full-fledged bank in the U.K. after the Prudential Regulation Authority lifted restrictions on its license, marking a significant milestone in the company's development [1][2]. Group 1: Licensing and Regulatory Approval - The full banking license allows Revolut to offer a comprehensive range of financial products, including loans, mortgages, credit cards, overdraft protection, and savings products, similar to offerings from competitors like Monzo and Starling [2]. - The license ensures customer deposits are protected up to £120,000 ($160,550) through the Financial Services Compensation Scheme in the event of bank failure [3]. - Revolut initially applied for a banking license in 2021 but faced challenges, including issues with revenue verification due to IT system design flaws [3]. Group 2: Internal Improvements and Mobilization Phase - The company improved its internal controls and consolidated its share classes to comply with PRA regulations [4]. - A conditional license was granted in 2024, allowing Revolut to enter a "mobilization" phase to test systems and address regulatory concerns, during which it could hold a maximum of £50,000 in total customer deposits [4][5]. - The recent transition marks the end of the mobilization phase, enabling the company to fully launch its banking services [5]. Group 3: Customer Base and Future Plans - Revolut has approximately 13 million customers in the U.K. and around 70 million globally [6]. - The co-founder emphasized that the licensing change is a strategic priority and a crucial step towards establishing a truly global bank, with plans to introduce a full suite of banking services to U.K. customers [5].