Why Revolut’s journey to become a UK bank is taking so long

## Revolut’s UK Banking License: Still Waiting for the Green Light

Revolut, the popular fintech company, secured a restricted UK banking license in July 2024, but is still navigating the complex process of achieving full authorization. Here’s a breakdown of the situation:

• Mobilization Phase: Revolut is currently in the “mobilization” phase, limiting customer deposits to £50,000.
• Customer Impact: UK customers are still served by Revolut’s e-money unit, not the banking entity, meaning their deposits aren’t directly insured by the Financial Services Compensation Scheme.
• Delays: The authorization process is taking longer than expected due to several factors:
  • Revolut’s size and complexity.
  • The need for a consumer credit license.
  • Regulatory scrutiny, potentially influenced by the 2008 financial crisis and concerns over fraud.
• Regulatory Concerns: Some analysts suggest the UK’s regulatory approach may be overly cautious, potentially hindering growth.
• Government Stakes: Full authorization is crucial for the UK government, as it faces criticism for creating a potentially hostile environment for tech companies.
• Revolut’s Perspective: Revolut remains optimistic, stating they are on track to launch a fully regulated UK bank this year and are working constructively with regulators.

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