Revolut, the $75bn British fintech, has finally secured a full UK banking licence more than four years after first applying. The company's 13mn UK customers received the news with limited details about upcoming changes. The licence means deposits will now be guaranteed under the Financial Services Compensation Scheme, addressing a key regulatory gap.

The real value lies in deposit potential. Revolut's average customer balance sits at £575, compared to £1,400 at Monzo. If Revolut could lift this to £1,000 across its customer base, it would represent an additional £5.5bn in deposits, generating roughly £200mn in annual interest income at current rates.

The licence also provides international credibility that may have previously hindered expansion. However, Revolut must now prove it can build the risk management expertise needed for lending — a challenge that has stymied many payment-focused fintechs trying to make the leap to traditional banking services.