Revolut expands UK banking operations in full swing, with the fintech giant hiring 100 new staff to support its transition into a full-service bank. After securing its long-awaited UK banking licence in 2024, Revolut is now focused on mobilising its banking operations and expects to have around 200 employees by the end of 2025.
Banking Licence Milestone and Mobilisation Strategy
Revolut’s UK banking journey has been a long one, with its Prudential Regulation Authority (PRA) licence approval taking three years due to regulatory scrutiny over financial reporting and company size. However, CEO Francesca Carlesi reassured that the company is working closely with regulators to ensure a smooth transition.
“We have been in constant dialogue with regulators to meet the highest standards,” said Carlesi. “We are not rushing—getting it right is more important.”
Currently, Revolut is testing its banking systems with 30 selected customers who have a total of £50,000 in deposits. If all goes as planned, the fintech will complete this stage within 12 months, allowing it to operate fully as a UK bank by July 2026.
Mass Migration of Customers to the New UK Bank
Once it gets the final go-ahead, Revolut will begin transferring millions of UK customers from its electronic money institution (EMI) accounts to its fully licensed banking entity. With a valuation of $45 billion (£35 billion), Revolut is one of the biggest fintech firms to make this transition, setting the stage for an expanded banking presence in the UK.
Revolut’s Group CEO Nik Storonsky acknowledged that delaying bank licences was a misstep. He suggested that smaller companies often get approved faster, whereas Revolut’s size made the process more complex.
Record Profits and Growth Outlook
Despite the lengthy regulatory process, Revolut is thriving financially. Sources indicate that the company will publish its 2024 financial results next month, reporting an estimated $1 billion (£780 million) profit before tax—a record-breaking figure. This marks a significant increase from $545 million (£425 million) in 2023, demonstrating strong growth despite regulatory hurdles.
Expanding into Private Banking and Future Plans
Beyond its UK banking expansion, Revolut is also eyeing the private banking sector. With evolving regulations and increased demand for new banking alternatives, Revolut is positioning itself as a major player in the broader financial landscape.
A recent US congressional hearing highlighted the challenges of new bank creation, noting that only 82 new banking charters have been issued in the past 15 years. Revolut’s expansion efforts align with industry calls for a more straightforward process for de novo (new) bank formation.
The Road Ahead for Revolut UK Banking
With a major hiring spree, a full-service banking launch on the horizon, and record financial performance, Revolut is poised for an exciting 2025. The fintech giant is betting big on its UK banking expansion, ensuring that when it fully transitions, it will be well-prepared to compete with traditional banks.
