Revolut Abandons UK License Wait to Pursue US Banking Under Trump

Revolut has scrapped plans to acquire a US bank and will instead apply directly for an American banking license through the Office of the Comptroller of the Currency, betting that the Trump administration’s deregulatory approach will deliver faster approval than its years-long wait for a full UK license.

The move marks a strategic reversal for the $75 billion fintech, which had explored buying a nationally chartered US lender as recently as September 2025. According to PYMNTS, Revolut is now in discussions with US officials about pursuing a de novo charter, which sources describe as potentially faster under what they characterize as a “more permissive posture” from regulators. The Trump Administration rescinded Biden-era OCC rules that imposed stricter scrutiny on bank mergers, and approved five banking licenses in December 2025, including two for crypto firms Circle and Ripple.

The contrast with Revolut’s UK experience is stark. The company received conditional approval for a UK Banking license in July 2024 but remains trapped in a mobilization phase that has now stretched beyond 14 months—well past the typical 12-month timeline. TechCrunch reported in October 2025 that the Bank of England is holding up final approval over concerns about whether Revolut’s risk controls can match its rapid international expansion. During mobilization, Revolut’s UK banking division can hold only £50,000 in total deposits and cannot offer lending services—a significant constraint for a company serving over 70 million customers globally as of January 2026.

UK Regulatory Bottleneck Drives Strategic Pivot

Revolut’s co-founder Nik Storonsky has repeatedly called securing the UK banking license the company’s “number one priority,” but the prolonged mobilization period tells a different story. The Prudential Regulation Authority is reportedly scrutinizing how Revolut’s risk management systems function across its international operations, particularly as the company has moved aggressively into new markets. BM Magazine noted that the delay “now stretching over three years” highlights how regulators struggle to evaluate institutions operating at digital speed and global scale.

The acquisition route proved equally problematic. Revolut abandoned merger plans after concluding that buying a US community bank would likely require maintaining physical branch networks—antithetical to its digital-first model. Regulatory approval for a change of bank ownership would also require extensive engagement with US regulators. The standalone license application bypasses these obstacles while potentially offering faster processing under current political conditions.

Trump Administration’s Fintech-Friendly Posture

The regulatory environment shift in Washington appears genuine. In 2025, there were 14 applications to the OCC for de novo charters—nearly matching the total for the preceding four years, according to data from law firm Freshfields. Multiple sources told the Financial Times that Fintech executives have “noticed a shift in the OCC’s attitude” and that many companies in the sector are now considering license applications themselves.

The Trump administration has pursued aggressive financial deregulation since taking office. According to R Street Institute, Executive Order 14192 established a “10-to-1” agenda requiring elimination of 10 existing regulations for every new one implemented. The Consumer Financial Protection Bureau announced it would narrow its focus to depository institutions and “deprioritize” oversight of fintech firms—what one memo described as “a major shift” offering regulatory relief to the sector. The OCC has also indicated it is “much more open to applications from fintechs and cryptocurrency groups,” creating a markedly different environment than the Biden era.

Implications for UK Fintech Competitiveness

The episode exposes a growing competitiveness problem for post-Brexit Britain. The UK holds approximately 80 percent of Europe’s £4.5 billion fintech market, according to research firm Bruegel, but regulatory delays risk eroding that advantage. Beaumont Capital Markets noted that “regulatory misalignment means UK-based companies now face additional compliance costs and operational complexities” while simultaneously losing seamless EU market access.

Despite these challenges, Revolut has secured banking licenses in the European Union, Mexico, and Colombia while its UK application languishes. The company has committed to a $13 billion investment over five years to support global expansion and aims to reach 100 million customers across 100 countries by 2030. The US market—already home to Revolut operations since 2020—represents a massive revenue opportunity. A full banking license would enable nationwide lending rights and remove deposit caps, unlocking services Revolut can already offer in other jurisdictions.

What to Watch

Timing will be critical. If Revolut secures US approval before completing UK mobilization, it would represent a significant geopolitical embarrassment for British regulators and could accelerate fintech migration toward more permissive jurisdictions. The UK government has pledged to make financial services a growth priority, but words must translate to regulatory action—Chancellor Rachel Reeves emphasized in November 2024 that the FCA must “create a regulatory environment that facilitates growth.”

The broader question is whether Washington’s lighter-touch approach proves sustainable or repeats the regulatory-pendulum swings that followed the 2008 financial crisis. As one analyst told Global Finance Magazine, “effective deregulation needs to be done with a scalpel, not a meat ax.” If Revolut’s bet pays off, expect a wave of fintech applications to the OCC—and increased pressure on UK regulators to match the pace or risk losing the ecosystem they spent a decade cultivating.