Financial Services
For years, you probably used Revolut like a bank. Spent on it, saved on it, sent money through it, but until this week, it did not have a full banking licence to operate in the UK. It has spent a number of years applying to the financial regulatory authorities and finally got its approval over the week. One of the key restrictions of not having its banking license was that it could only hold customer deposits of a total of £50,000.
Before this week, Revolut was categorised as an Electronic Money Institution, meaning it could offer payments, foreign exchange, and digital accounts, but had limited ability to lend or provide the full range of banking services. After five years, Britain's most valuable fintech is finally, officially, a bank. What does this mean for you, its customers?
First, it means they can offer you deposit accounts with up to £120,000 per person protected by the Financial Services Compensation Scheme (FSCS). We wrote about what FSCS protection means for you here.
Revolut will now also be able to offer you lending services like personal loans, credit cards, mortgages and overdraft facilities.
Finally for existing customers, Revolut will transfer your existing accounts to its bank in phased batches and will give at least two months' notice to you prior to moving your accounts.
Read more about the announcement here: Revolut
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