In the competitive world of fintech, few stories encapsulate the challenges of scaling from a digital disruptor to a fully regulated bank quite like Revolut’s pursuit of a UK banking license. Founded in 2015 as a money transfer app, Revolut has grown into a global powerhouse with over 45 million users worldwide, offering everything from cryptocurrency trading to insurance. However, its ambition to become a full-fledged bank in its home market—the UK—has been a drawn-out process marked by regulatory hurdles, compliance issues, and political intrigue. As of August 19, 2025, the outcome remains unresolved, with Revolut still navigating the final stages. This article explores what happened, the timeline, and the current status of this high-stakes endeavor.
The Application: From Ambition to Restricted Approval
Revolut’s journey began in January 2021 when it formally applied for a UK banking license from the Prudential Regulation Authority (PRA), part of the Bank of England (BoE). The goal was to expand beyond its existing e-money license, enabling services like deposit-taking, lending, and overdrafts—core banking functions that would allow it to compete directly with traditional institutions like Barclays and HSBC.
The application process, typically expected to take 6-12 months for most applicants, stretched far longer for Revolut due to its unprecedented scale. With over 10 million UK customers at the time of application, Revolut was the largest fintech ever to seek such authorization. Regulators scrutinized everything from financial accounts to IT infrastructure, risk management, and anti-money laundering (AML) protocols.
After more than three years of back-and-forth, Revolut achieved a milestone in July 2024: it was granted a banking license with restrictions, entering the “mobilization” or “authorization with restrictions” (AwR) phase. This phase allows the company to build out its banking operations under close supervision, but with limits such as a £50,000 cap on total deposits and restrictions on offering certain products.
Timeline: Over Four Years of Effort and Delays
Revolut’s pursuit has spanned more than four years as of mid-2025, far exceeding standard timelines:
- January 2021: Application submitted to the PRA.
- 2021-2023: Intensive regulatory review amid concerns over governance, accounting delays (e.g., late filing of 2021 accounts), and compliance lapses. Revolut faced criticism for a high fraud rate, as highlighted in a BBC Panorama report, and a €3.5 million fine from the Bank of Lithuania for AML failures.
- July 2024: Restricted license granted after a three-year wait, initiating the mobilization phase. Official BoE guidance limits this to no more than 12 months, setting a soft deadline of July 2025.
- June 2025: Passed the 12-month mobilization milestone without full authorization, prompting concerns about extensions.
- July 2025: Reports of potential missed deadlines surfaced, with a three-way meeting brokered by UK Finance Minister Rachel Reeves between Treasury officials, BoE regulators, and Revolut to accelerate progress. However, BoE Governor Andrew Bailey denied any rift and blocked direct involvement to preserve independence.
- August 2025: Still in mobilization, with Revolut stating it expects to launch as a fully regulated bank “this year.”
The total effort has involved hiring hundreds of new staff, enhancing IT systems, and addressing compliance gaps—tasks described by a Revolut spokesperson as the “largest and most complex mobilisation ever undertaken in the UK.”
Challenges and Reasons for Delays
Several factors have prolonged the process:
- Scale and Complexity: Unlike smaller challengers (e.g., those with under 500,000 customers), Revolut’s 10 million+ UK users demand rigorous safeguards to protect the financial system. As Lotus Qi, COO at Twin Path Ventures, noted, “They are going through with 10m active customers when usually it’s <500k.”
- Compliance Issues: Past problems, including fraud vulnerabilities and AML shortcomings, have raised red flags. Shaanil Senarath-Dassanayake, an associate at Charles Russell Speechlys, emphasized that these “touch on key parts of the FCA’s assessment.”
- Political and Regulatory Tensions: The process became politicized in 2025, with government pressure for faster fintech approvals clashing with the BoE’s independence. Bailey’s refusal to engage directly underscored this divide.
- Market Conditions: Hiring challenges and broader economic factors have justified extensions, per BoE guidance.
Despite these, experts like Michael Thomas from Hogan Lovells believe revocation is unlikely, as the PRA would prefer a clear timeline over indefinite delays.
Current Status: Ongoing, with Optimism for 2025 Resolution
As of August 19, 2025, Revolut does not yet hold a full UK banking license. It remains in the mobilization phase, where it must submit a final application three months before exiting to prove readiness. Recent discussions on platforms like X highlight anticipation, with users and analysts expecting approval by year-end, potentially impacting competitors like Monzo. A spokesperson reiterated: “We’re progressing through the final stages… and expect to launch as a fully regulated bank in the UK this year.”
The BoE has refuted claims of government conflict, emphasizing alignment on the process.
Implications for Revolut and the Fintech Sector
Full authorization would unlock significant growth: Revolut plans to introduce credit cards, personal loans, and overdrafts in the UK, per a 2026 product roadmap. It would also provide full Financial Services Compensation Scheme (FSCS) protection up to £85,000 per customer, boosting trust.
For the broader industry, this saga highlights the tension between innovation and regulation. While Revolut holds licenses elsewhere (e.g., a Lithuanian banking license since 2018 for EU operations, a PPI license in India in April 2025, and plans for a French license announced in May 2025), the UK delay underscores the BoE’s cautious approach. In the US, Revolut withdrew its banking charter application in 2021 but continues operations via partners, with a recent switch to Lead Bank in 2024.
Conclusion: A Test of Resilience
Revolut’s UK banking license application, now over four years in the making, exemplifies the rigorous path fintechs must tread to achieve bank status. From the initial 2021 filing to the 2024 restricted approval and ongoing mobilization, the process has tested the company’s resilience amid delays driven by scale, compliance, and politics. As of August 2025, the final outcome is pending, but with expectations of resolution by year-end, Revolut could soon redefine UK banking. For fintech enthusiasts, this remains a story to watch—one where persistence meets regulatory reality.