Revolut officially becomes a licensed bank in the UK

Revolut first redefined how millions manage their money, and now they have officially become a bank in the UK. The turning point means that UK customers will soon see all their e-money wallets turn into current accounts.

This is a bigger deal than it sounds, as it changes how your money is protected and what kind of account you'll have going forward. It could also mean an influx of players using Revolut as a payment method for financing their gameplay.

How Revolut became a UK bank

Revolut is a UK-based global financial technology company that provides digital banking services. This is all done via a mobile app. It includes debit cards, currency exchange, crypto trading, stock trading, and more.

The company was founded in 2015, and since then, it has grown to serve over 70 million clients spanning across 160+ countries.

Until recently, it operated under an e-money licence, meaning your funds were safeguarded separately, but not in the same way a traditional bank holds deposits.

With the launch of Revolut Bank UK Ltd, this changes and they’re now authorised and supervised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

Why this change matters

UK customers will soon see their e-wallets upgraded to current accounts. That sounds like a big shift, but the day-to-day usage stays the same.

All paid plan holders will notice updated travel insurance policy numbers, but the coverage will stay the same.

The expectations are, though, that the user base will increase significantly. This could also influence UK online casinos, which could see more Revolut users than before.

Increased money protection

This is the most meaningful change. Revolut safeguarded customer funds under e-money regulations before. But now, with the bank status, all deposits are covered by the Financial Services Compensation Scheme (FSCS). This is the same scheme that protects money in all traditional banks.

This means individual accounts have protection of up to £120,000. If you have a joint account, then each holder gets their own £120,000 limit.

Money in third-party partner saving accounts will remain protected and separate under the FSCS rules. At the end of the day, all this means more peace of mind while banking with Revolut.

What do you need to do?

Nothing, unless you want to opt out. The process is simple and allows users to easily accept the changes to their accounts, meaning no further action is required.

While the transition process is automatic, you will be notified a week before the change and receive confirmation once it’s complete.

If you don’t want to move to Revolut Bank, you can close your account via the app or by contacting the support team.

Updated terms and conditions

There are changes that will take place, particularly when it comes to Revolut’s terms and conditions. This includes information on how the new current accounts work, from deposits and withdrawals to payments and account management.

The personal fees page provides a clear breakdown of charges, fees, and limits of all features offered. The Revolut Group Framework Terms will provide a detailed explanation of how Revolut interacts with other Revolut Group companies.

Revolut will now become a controller of your personal data with updates outlined for transparency in the Customer Privacy Notice.

What’s happening next?

With Revolut becoming a licensed bank, the doors have opened for new possibilities, including new products and features. While Revolut hasn’t announced specifics yet, users can expect more robust savings and lending as the areas most likely to improve.

In many ways, Revolut will now get to compete head-on with traditional banks. While simultaneously maintaining the digital offering that made them popular from the start.

A warning from Revolut

Revolut has issued a warning to customers to stay vigilant during the transition. They have stated that they will only contact you via email, push notifications, or in-app messages. They will never call or text you about account changes.

Any links provided in the email will also be accessible via the legal section of their website. This is for added security, and users should be careful not to click on anything that does not show up on both.