After four years of waiting and regulatory negotiations, fintech Revolut has just obtained a full banking license in the United Kingdom. The authorization was granted by the Prudential Regulation Authority, the banking supervisor of the Bank of England, ending a long period of uncertainty for the company founded by Nik Storonsky.
This decision marks a structural transition for Revolut, which is moving from the status of a financial platform to that of a fully regulated bank in its main domestic market. In a sector where the line between fintech and banking has long been blurred, the company is taking a decisive step.
The end of a hybrid status
Since its creation in 2015, Revolut has built its growth on a hybrid model, already offering a wide range of financial services (current accounts, international payments, foreign exchange, investment or cryptoassets), without having a full banking license in the United Kingdom.
In fact, Revolut operated as a payment institution. This status makes it possible to distribute financial services, but limits certain fundamental activities of the banking profession, in particular credit.
🚨 SMARTJOBS
- MISTRAL – Account Executive, Enterprise, France – Paris
- ANTHROPIC – Startup Partnerships – France & Southern Europe
- CONTEXT – HR Director – Human Resources Director
- ECOLE POLYTECHNIQUE – Director/Deputy Director of International Relations (F/M)
- CLAROTY — Sales Development Representative
- FRACTTAL — Account Manager (France)
- BRICKSAI — Founding Growth Manager
👉 Find all our offers on the DECODE MEDIA Jobboard
đź“© Are you recruiting and want to strengthen your employer brand? Discover our partner offers
During the so-called mobilization phase, Revolut could only keep a symbolic amount of deposits, limited to 50,000 pounds sterling in total in its British banking entity. This period is usually used to test compliance systems and internal control systems before final authorization.
The procedure usually lasts around twelve months, in the case of Revolut it lasted for almost four years.
Exceptional regulatory prudence
The unusual length of the process is largely explained by the size the fintech has already reached. Revolut now claims 13 million customers in the UK, already making it one of the largest digital financial players in the country.
For supervisors, allowing a company of this scale to become a bank involves a particularly high level of scrutiny. Regulators notably analyzed governance, risk management and anti-fraud systems.
The process was also closely observed by the British government. While the Chancellor of the Exchequerr Rachel Reeves had considered facilitating a dialogue between the company and the supervisory authorities, the governor of the Bank of England, Andrew Bailey, had opposed it in the name of regulatory independence.
An episode which illustrates the permanent tension between two sometimes contradictory objectives: encouraging financial innovation while preserving the stability of the banking system.
The opening of a new economic model
With obtaining the full banking license, Revolut now gains access to one of the historic pillars of banking profitability, which is credit. The fintech has already obtained authorization to provide consumer credit services to its UK customers. The move paves the way for the launch of new products, including credit cards and financing solutions.
Until now, Revolut’s revenue has mainly come from payment commissions, premium subscriptions and some trading activities. The lending activity adds a new source of income based on interest margins.
This development gradually brings Revolut closer to the universal banking model, while retaining the technological architecture and user experience of a fintech.
A key step for international development
The decision of the British regulator, however, goes beyond the national market alone. In the international financial system, authorizations issued by home country regulators often play a determining role in obtaining licenses in other jurisdictions.
Revolut already has a European banking license obtained in Lithuania, which allows it to operate throughout the European Union. The British authorization further strengthens the group’s regulatory credibility. The company has also recruited FrĂ©dĂ©ric Oudea to give credibility to its governance in Europe.
The company last week indicated that it had taken steps to obtain a banking license in the United States. The outcome of the British process could facilitate these discussions with the American authorities.
A valuation already comparable to the big banks
Obtaining the license occurs in a particular context for the company. During its last financing round, Revolut was valued at $75 billion, or approximately 63.7 billion euros. In 2024 Revolut recorded a record net profit of €934 million ($1.0 billion), supported by 72% growth in revenue to €3.7 billion.
This valuation already places fintech at a level comparable, or even higher, than that of several European banks listed on the stock exchange. This new license could thus consolidate the credibility of this valuation by bringing Revolut’s economic model closer to that of a traditional banking establishment.
