Global FinTech Revolut has received its UK banking licence “with restrictions” after a three-year wait.

Approval from the Prudential Regulation Authority (PRA), the Bank of England’s arm that regulates and supervises financial services, means that the neobank can now enter a ‘mobilisation’ stage, also referred to as ‘authorisation with restrictions.’

The stage sees authorised new banks operate with deposit restrictions while they complete the final aspects of their set up before starting to trade fully.

During this phase, Revolut’s UK customers will be able continue to regularly use their Revolut e-money account.

Until the phase ends, Revolut will be able to hold only £50,000 of total customers deposits.

UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the FCA, where their funds are safeguarded in accounts in line with the Electronic Money Regulations 2011.

Other firms who have previously passed through a mobilisation phase include Monzo, Starling, Atom Bank, Zopa Bank, GB Bank and Kroo.

Nik Storonsky, chief executive of Revolut, commented: “We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers.”

Francesca Carlesi, UK chief executive of Revolut said that the announcement is a “significant step forward” for the bank.

“It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut,” continued Carlesi.

Revolut first filed for a UK banking licence in 2021. Since then, it has clinched approval from other countries, including Mexico.

A range of issues emerging during the past years, including accounting and reputational issues and late accounts filings have made it more difficult for it to enter the UK.

The firm, which currently has over nine million UK customers and 45 million globally, recently published its financial statements, announcing profits before tax of $545 million and revenues surpassing $2.2 billion.

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