Revolut, a cryptocurrency-friendly fintech startup, has officially obtained a full banking licence in the UK, enabling it to grow its clientele and provide deposit protection.
Over the next several months, customer accounts will progressively transfer to the new organisation, Revolut Bank UK Ltd, which will be used by the London-based company.
The approval signifies the end of a protracted regulatory procedure. In 2024, Revolut was granted a restricted banking licence, which allowed regulators to keep a tight eye on the business while it got ready to become a full-fledged bank.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), which oversee conventional banks in the UK, will oversee Revolut under the new licence.
The Financial Services Compensation Scheme (FSCS) will now protect qualified deposits, which is a significant advantage for users. If a bank fails, this mechanism guarantees up to £120,000 (about $160,000) per person.
Customers will be notified via email or in-app messaging when their accounts are prepared to transfer to the new banking organisation, as the transition happens gradually.
Most common features won’t change. The Revolut app will continue to show previous transactions and account statements, and account numbers, sort codes, and IBAN information will remain unchanged.
Certain services, though, will continue to be provided by non-regulated financial institutions. Commodities, stock investments, and cryptocurrency trading will all continue to be conducted through distinct Revolut business divisions.
The development strengthens Revolut’s position in the financial sector and could help the company expand both traditional banking and crypto-related services across global markets.
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