In July this year, the UK banking regulator granted Revolut a provisional banking license and it is now on its way to becoming a full-fledged bank.
This means that in the event of Revolut’s bankruptcy, customer deposits will be guaranteed up to £85,000 per person.
Until then, it will continue to operate as an electronic money institution or electronic money firm.
However, becoming a bank means it will be able to provide loans to customers through credit cards, overdrafts and mortgages.
“This means the stakes are higher for their customers if they are targeted by fraudsters,” says Rob Lilley-Jones.
“I think there may be a political element to Revolut’s licensing because it is getting big enough to challenge the High Street banks,” says Francis Coppola, a financial journalist and expert on banking risk and regulation.
“I don’t think any government would want something of this size to play fast and loose with the rules.” Still, she adds, “I guess you might wonder, given so many complaints, whether Revolut should be licensed.”
The Treasury says that the decision to grant Revolut a banking license is made by independent regulators. They refused to comment on “Panorama”.
Revolut says it adheres to the same regulatory standards as any High Street bank and is sorry to hear of any cases where customers have been targeted by criminals.
It says fraud fell by 20% last year, but admits there is “always more to do”.
