Revolut's full banking license in the UK, obtained in March, is unlikely to displace existing banks despite renewed concerns, analysts at Citi believe.

The bank received approval from the Prudential Regulation Authority for offering client deposit accounts protected by the Financial Services Compensation Scheme after applying in 2021.

Revolut is already operating under a banking license in Lithuania, obtained in 2018, although the growth of deposits in markets such as Spain has been modest, reaching approximately €4 billion over two years, which represents 0.25% market share.

Citi analysts Andrew Coombs, Saifur Rahman, and Kanberk Benning noted that while neobanks are quickly attracting customers, most users keep them as supplementary rather than primary accounts. Deposits per user in neobanks are less than one-tenth of deposits in traditional banks, excluding Chase, while loans per user are less than one-hundredth, according to the study.

Revolut reported 13 million customers in the UK and 69 million worldwide, with transaction volumes growing by 67% year-on-year to £986 billion in 2025. Loans to customers increased by 120% to £2.2 billion, primarily consisting of unsecured personal loans and credit cards in 13 countries.

Despite excellent digital offerings and customer service ratings, neobanks face profitability challenges. Revolut's cost-to-income ratio was 60% in 2025, comparable to traditional banks. The company's profit before tax rose by 57% to £1.7 billion, with operations in the UK accounting for 85% of the group's profit.

Citi believes that large British lenders continue to dominate the market even among young clients. The company assigned 'Buy' ratings to NatWest Group PLC (LON:NWG) and Lloyds Banking Group PLC (LON:LLOY), as well as a 'Neutral' rating for Barclays PLC (LON:BARC).

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