In July this year, the UK banking regulator granted Revolut a provisional banking license and it is now moving forward as a full-fledged bank.
This means that if Revolut goes bankrupt, customers’ deposits will be insured up to £85,000 per person.
Until then, it will continue to operate as an electronic money institution or electronic money company.
However, being a bank means that it can extend credit to its customers through credit cards, overdrafts and mortgages.
“This means customers are at greater risk if they are targeted by fraudsters,” says Rob Lilley-Jones.
“I think there may be a political element to Revolut’s license, because it is moving to a scale that could challenge high street banks,” said Frances Coppola, a financial journalist and banking risk and regulation expert.
“I don’t think any government would want something on that scale to play fast and loose with the rules.” But she added: “I think you might be asking whether Revolut should be licensed because there are so many complaints.”
The Treasury said the decision on whether to grant Revolut a banking license would rest with the independent regulator. They declined to comment to Panorama.
Revolut says it adheres to the same regulatory standards as all High Street banks and is saddened to hear of instances where customers have been targeted by criminals.
While he said fraud had fallen by 20% last year, he admitted “there’s always more to do.”
