How to Verify a Bank’s Licence Before Opening an Account

So before you open any account — whether it’s with a shiny new fintech or a name you vaguely recognise from an advert — here’s exactly how to verify a bank’s licence, in plain terms, with no assumptions about what you already know.

Why a Licence Actually Matters

A banking licence isn’t just bureaucratic paperwork. It means the institution is legally authorised to hold your money, and — critically — that your deposits are likely protected if things go wrong.

In the UK, licensed banks and building societies must be authorised by the Prudential Regulation Authority (PRA) and regulated by the FCA. This authorisation is what triggers eligibility for the Financial Services Compensation Scheme (FSCS), which protects deposits up to £85,000 per person, per institution. No licence, no protection. It’s that simple.

Here’s the thing: a firm can look completely legitimate and still be operating without authorisation. Clone firms — where fraudsters copy the branding of a real, regulated bank — are one of the most common scams the FCA deals with. According to FCA guidance on investment scams, clone firm fraud cost UK consumers £78 million in 2022.

The Registers You Need to Know About

The single most reliable tool is the FCA’s Financial Services Register. It’s free, public, and takes about two minutes to use.

The register lists every firm and individual that is — or has ever been — authorised or registered by the FCA. You can search by firm name, reference number, or postcode. If a bank claims to be FCA-regulated and it doesn’t appear here, that is your answer.

Outside the UK, the equivalent registers include the European Banking Authority (EBA) Register for EU-authorised institutions and the FDIC BankFind Suite in the United States. If you’re looking at an international account, always check the regulator of the country where the bank is incorporated — not just where it’s marketing to you.

How to Check a Bank’s Licence: Step by Step

This process takes under five minutes and should become habit before you open any financial account.

1. Get the firm’s full registered name. Not just the trading name — look for the legal entity name, which is usually in the footer of the website or in the terms and conditions. A legitimate firm will display this clearly.
2. Find the FCA reference number. Regulated firms are required to display their FCA reference number on their website. Copy it exactly — clone firms sometimes use a real firm’s number with a slightly different name.
3. Go directly to register.fca.org.uk. Do not use a link from the firm’s own website. Type the address yourself. Search for the firm by name and by reference number separately.
4. Check that the details match precisely. Confirm the firm name, address, and permissions all align with what’s on the website. Authorised banks will typically show permissions including “accepting deposits.”
5. Cross-check with the FCA Warning List. Search the firm name on fca.org.uk/consumers/warning-list. Some clone firms are already flagged there before you encounter them.
6. Check Companies House. Verify the firm is a real, incorporated company with a trading history. A bank incorporated three months ago with one director and no filing history deserves serious scrutiny.

Eight Red Flags That Should Make You Stop

Checking the register is the foundation. But there are warning signs that should trigger extra caution even before you get that far — here are the ones worth knowing.

1. Interest rates that are obviously too goodIf a savings account is offering 8–12% when the Bank of England base rate is around 5%, that gap needs explaining. Fraudulent firms routinely use inflated rates as bait. According to FCA consumer warnings, unusually high returns are the single most common hook in unauthorised deposit-taking schemes.
2. Pressure to act quickly“This rate is only available for the next 24 hours.” Urgency is a manipulation tactic, not a feature of genuine financial products. Real banks don’t need to rush you.
3. The “regulated” badge links nowhere usefulMany fraudulent sites display FCA or FSCS logos. Click on them. If they link to a generic homepage rather than a specific firm entry on the FCA register, treat it as decorative — not evidence of anything.
4. No physical address or a vague oneLegitimate banks have registered addresses you can verify. A P.O. box, a virtual office address, or “Suite 400, Canary Wharf” with no verifiable history is worth querying.
5. Contact only via WhatsApp or emailIf there’s no phone number listed, no live customer service line, and communication happens entirely through messaging apps — that is not how licensed financial institutions operate.
6. The website domain is recentYou can check domain registration dates using tools like WHOIS. A site claiming to be an established bank but registered six months ago is a significant inconsistency.
7. Spelling and grammar issuesI know this sounds obvious, but it still catches people. Poorly written T&Cs, inconsistent terminology, or clumsy phrasing throughout a site are signs it was assembled quickly — not built by a compliance team.
8. They ask for payment in crypto or bank transfer before account activationNo legitimate bank charges you a fee to open an account, and certainly not in cryptocurrency. If a “bank” asks for a deposit to “unlock” your account before you’ve been through a formal onboarding process, stop entirely.

“We want to make it as easy as possible for consumers to check who they’re dealing with. If a firm is not on the Register, we have not authorised them to offer financial services — and you will not have the protections the law provides.”

— Nikhil Rathi, Chief Executive, Financial Conduct Authority

What About Digital Banks and Fintechs?

This is where a lot of people get confused. *E-money institutions* — like some newer payment apps — are not the same as fully licensed banks. They are authorised by the FCA under a different regime and your money may be *safeguarded* rather than protected by the FSCS. That’s not necessarily a problem, but it’s a meaningful distinction.

Monzo, Starling, and Revolut’s banking arm (launched in 2024) all hold full UK banking licences and offer FSCS protection. Wise, on the other hand, is an e-money institution — your funds are protected through a safeguarding model, not FSCS. Neither arrangement is fraudulent. But you should know which type of institution you’re dealing with before you decide how much to deposit.

Understanding how account identification works in broader banking systems — including tools like the Bank Verification Number, used in Nigeria’s banking system to uniquely identify account holders — shows how regulators globally are trying to build accountability and reduce fraud through better identity infrastructure.

Things to Check That Most People Skip

A few less obvious checks that are genuinely worth doing:

• Search the firm name + “FCA warning” in Google before you do anything else. It takes ten seconds and can save you everything.
• Look up the firm on the FCA Warning List specifically — the main register only shows authorised firms, so unlicensed firms don’t appear there at all.
• Check whether the firm is a member of the Financial Ombudsman Service (FOS). Authorised banks must be — you can confirm membership on the FOS website.
• Read a few recent reviews on Trustpilot, but don’t rely on them. Fake reviews are trivially easy to generate, and some scam firms have suspiciously glowing ratings.

If you’ve found all this useful, there’s plenty more in the way of other banking life hacks that can help you manage your money with a bit more confidence and a lot less anxiety.

A Quick Definition to Keep in Mind

Authorised Deposit-Taking Institution (ADTI): A bank or building society that has been formally approved by the PRA and FCA to accept deposits from the public. Only ADTIs trigger FSCS deposit protection. Any firm accepting deposits without this authorisation is operating illegally in the UK, regardless of how professional its website appears.

Frequently Asked Questions

Q: How do I check if a bank is FCA regulated?

A: Go directly to register.fca.org.uk and search using the firm’s full name and its FCA reference number, which should be displayed on their website. Confirm the firm name, address, and that its listed permissions include “accepting deposits.” Do not use any link provided by the firm itself — type the address directly into your browser.

Q: Is my money safe with a digital bank or fintech?

A: It depends on whether the firm holds a full banking licence or operates as an e-money institution. Fully licensed banks — like Monzo and Starling — offer FSCS protection up to £85,000. E-money institutions like Wise use a safeguarding model instead. Both can be legitimate, but the level of protection differs. Check the FCA register to confirm which category applies.

Q: What should I do if I think a bank is fake?

A: Do not transfer any money. Report the firm to the FCA using their online scam reporting tool at fca.org.uk/consumers/report-a-firm. You can also report it to Action Fraud on 0300 123 2040. If you’ve already sent money, contact your bank immediately and ask them to initiate a recall — under the Contingent Reimbursement Model (CRM) code, many banks are obliged to reimburse authorised push payment fraud in qualifying cases.

Q: Does an FSCS logo on a website mean my money is protected?

A: No. The FSCS logo can be copied and pasted by anyone. The only way to confirm protection is to verify the firm’s authorisation on the FCA register directly. The FSCS itself states clearly that protection depends entirely on the firm being a qualifying authorised institution — the badge alone means nothing.

Q: Can a firm be FCA registered but still not protect my deposits?

A: Yes. Some firms are registered with the FCA for specific activities — such as payment services or credit broking — without being authorised to accept deposits. Always check that the firm’s FCA permissions specifically include deposit-taking if you’re opening a savings or current account.