Revolut becomes a full UK bank: what changes, and what does not

On March 11, 2026, Revolut said that the Prudential Regulation Authority (the PRA, the arm of the Bank of England that supervises banks) had lifted the restrictions on its UK banking licence. Its UK company, Revolut Bank UK Ltd, can now operate as a fully licensed bank for personal and business customers.

It has been a long road. Revolut applied for a UK licence in 2021 and was granted one with restrictions in July 2024. That started what regulators call mobilisation, a trial period in which a new bank builds its systems while operating under tight limits. Mobilisation normally lasts up to 12 months; Revolut's lasted about 20. The company said the delay reflected its size. Reuters, citing earlier reporting by the Financial Times, said regulators had questioned whether its risk controls could keep pace with rapid growth abroad.

What a full licence changes

Until now, Revolut's 13 million UK customers have held their money with Revolut Ltd, an electronic money institution, or EMI. An EMI is not a bank. It must safeguard customer money, keeping it separate from its own funds, usually in accounts at other banks, but those balances are not covered by the Financial Services Compensation Scheme, the UK's deposit guarantee.

A licensed bank is different in two ways that matter:

• Deposit protection. Eligible deposits at a UK licensed bank are covered by the FSCS if the bank fails. Since December 1, 2025, the limit has been £120,000 per person, per banking licence, and certain temporary high balances, such as house sale proceeds, are covered up to £1.4 million for six months.
• Lending. A bank can lend customers' deposits. Revolut says the licence paves the way for credit and other products, which would put it in direct competition with the large UK high street banks.

The transition takes months

Nothing changes immediately for existing customers. Revolut says it will give at least two months' notice before moving each account to the new bank, and will move customers in batches over several months. New current accounts will be offered first to a small group, then widened over the following weeks. People signing up now may still be placed with the electronic money company at first, and the terms will say which entity holds their account.

In practice, that means a UK customer's balance stays safeguarded electronic money, not an FSCS protected deposit, until the day their account is actually migrated.

What it does not change for people outside the UK

Which Revolut company holds your money depends on where you live, and the protection follows the company, not your passport. Customers in the European Economic Area (the EU plus Iceland, Liechtenstein and Norway) are already served by Revolut Bank UAB, a bank licensed in Lithuania. Their deposits are covered by Lithuania's deposit insurance scheme up to €100,000 per person. The UK licence does not touch those accounts, and it does not extend FSCS cover to anyone outside the UK customer base. Customers in other regions are served by other Revolut companies under local rules.

It is also worth being clear about what deposit protection is for. It pays out if a bank fails. It does not help if an app goes offline, a card stops working abroad, or an account is frozen while a compliance team reviews a transfer. Those are far more common problems for internationally mobile people, and a licence does not solve them.

What it means for your banking setup

For UK residents, the move from electronic money to a licensed bank is a genuine improvement in protection once accounts are migrated. For everyone else, the lesson is the same as before:

• Know which entity holds your money and which scheme, if any, protects it. Your terms and conditions name it.
• Keep balances within protection limits at any single licence, and remember that brands within one banking group can share a licence and therefore a single limit.
• Do not rely on one provider, however well regulated. A backup account at a separate institution, ideally in a different country and currency, is what keeps you paying bills when your main account has a problem.
• Keep your details current. If you move country, tell every provider. Accounts held under the wrong country's terms are a common reason for sudden reviews and closures.

Our international banking service helps clients work out which accounts they actually need, prepare the documents banks expect, set up backup accounts in more than one country and declare every account properly in their tax home. We do not hold client money, and each bank makes its own decision.

This article is general information, not legal, tax or investment advice.