Revolut Secures UK Banking License and Plans Future Offerings
Fintech giant Revolut has obtained a full banking license in the UK and is eyeing a federal charter in the United States to expand its services.
The financial technology firm Revolut announced that it has successfully acquired a full banking license in the United Kingdom as of Wednesday, following approval from the Prudential Regulation Authority (PRA), which oversees banking operations.
Revolut Bank UK will offer deposit accounts for both individuals and businesses, securing eligible deposits up to £120,000 (approximately $160,958) under the protection of the Financial Services Compensation Scheme (FSCS). This scheme functions similarly to the Federal Deposit Insurance Corporation (FDIC) in the US, which insures bank deposits up to $250,000.
Revolut UK Banking License
Source: Revolut
Current Revolut customers in the UK will transition to the new account type over several months. This banking license lays the groundwork for future service expansions, including lending options.
Additionally, Revolut has submitted applications for a full banking license in Peru and a federal banking charter in the US as part of a trend where fintech and crypto companies are seeking to become full-fledged banks, merging digital with traditional finance.
The Cryptocurrency Sector’s Ambition
The crypto sector is increasingly pursuing national bank charters within the US, aiming to integrate closely with conventional financial systems. Notable companies seeking these charters include Ripple, Paxos, and Circle. In a historic move, the Kraken exchange was granted a limited-purpose master account with the Federal Reserve Bank of Kansas City, marking a significant milestone for the cryptocurrency field.
However, the banking industry is responding with resistance, reportedly considering legal action against the Office of the Comptroller of the Currency (OCC) to prevent crypto companies from obtaining bank charters, fearing competition from blockchain financial services.
