Revolut has officially launched Revolut Bank UK, marking a significant transformation from electronic money services to full retail banking in the UK market. This shift is made possible by the full banking license granted by the Prudential Regulation Authority (PRA), allowing user funds to be included in the UK’s statutory deposit insurance scheme.
Before the completion of the account migration, user funds remain classified as electronic money, protected under electronic money regulatory rules, but do not enjoy the protections of the Financial Services Compensation Scheme (FSCS) in the UK. Once migrated to Revolut Bank UK, funds will be recognized as bank deposits, thus receiving FSCS insurance coverage of up to £120,000 per person, which exceeds the typical £85,000 limit offered by most banks in the UK.
It is important to note that FSCS protection is only available to eligible individual customers, and the insurance limit applies to the total amount across all accounts held by a customer at the same bank. This means that even if a user has multiple accounts with Revolut, the total amount protected remains capped at £120,000.
This upgrade signifies Revolut's shift from relying on customer fund segregation mechanisms to a formal banking operation model with statutory deposit insurance, significantly enhancing the security and trustworthiness of user funds. Revolut has stated that the account migration will occur in phases, and users can check their account migration progress and status through its help center.