Revolut Finally Secures UK Banking License After Three-Year Regulatory Review

The UK Prudential Regulation Authority granted Revolut a full banking license Wednesday, ending a review process that stretched over three years and became the most closely watched fintech regulatory saga in Europe. The license allows Revolut to offer FSCS-insured deposits and direct lending products in the UK for the first time.

The delay centered on the PRA's concerns about Revolut's financial controls, revenue recognition practices, and the adequacy of its compliance infrastructure relative to its 9 million UK customers. Revolut spent an estimated $200 million upgrading systems to meet PRA requirements.

CEO Nik Storonsky called the license "the most important milestone in Revolut's history" and said the company would begin migrating UK customers to insured deposit accounts within 90 days. Current UK accounts are held through a Lithuanian banking license.

The approval immediately unlocks Revolut's ability to lend directly in the UK — a market it has served through lending partnerships. Analysts at Jefferies estimate that direct lending could add $800 million in annual revenue within three years, dramatically improving unit economics.

Revolut was last valued at $45 billion in a 2024 secondary transaction. With the banking license secured, bankers expect the company to pursue a London listing in 2027, potentially making it the largest UK tech IPO in history.