Revolut authorised as a bank after 3-year wait

Fintech Revolut will be able to offer its own loans and mortgages as a bank.

Financial super-app Revolut finally has the green light to become a bank, it announced today.

The British fintech giant became authorised as a UK bank, with restrictions, after applying in 2021.

The restrictions mean it’s now in a “mobilisation” period – common for new banks – during which it will set up banking processes before starting to operate as a UK bank.

No change yet for customers

Nothing will change for its 9 million UK customers for now, and the mobilisation period could take a few months, but it can’t take longer than a year, according to the bank watchdog, the Prudential Regulation Authority.

Revolut has 45 million customers globally and describes itself as an “all-in-one finance app”. It offers e-money personal and business accounts, investing, international money transfers and more.

Finder’s in-depth review of Revolut explains what the app offers in detail.

Better protection for your money

Today’s breakthrough paves the way for Revolut to expand its services to holding customer deposits as well as offering its own loans and even mortgages.

Unlike e-money providers, banks can hold deposits, and your money is protected up to £85,000 under the Financial Services Compensation Scheme if the bank goes bust. This is stronger protection than the safeguarding that e-money providers must offer.

Nik Storonsky, CEO of Revolut, said: “We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers.”

Revolut recently published its financial accounts for 2023. These said that group revenue topped $2.2 billion (around £1.71 billion), and profits before tax were $545 million (around £423.5 million).