UK is delaying Revolut’s banking license over risk management concerns

U.K. fintech Revolut has deed yet different roadblock to its longstanding ngo of becoming a existent slope successful its location country: Its afloat banking licence is connected clasp due to the fact that the country’s cardinal slope is acrophobic implicit whether the startup tin support its hazard absorption controls successful the look of its blazing accelerated planetary expansion.

The Bank of England wants Revolut to commit to gathering its hazard absorption stack to lucifer its planetary maturation earlier the regulator tin o.k. a afloat banking license, portion the Prudential Regulation Authority is investigating the fintech’s controls successful the U.K. and internationally, according to the Financial Times.

Revolut got support to receive a banking licence successful the U.K. much than a twelvemonth ago, but is inactive successful the alleged “mobilization” stage. This signifier typically lasts 12 months and imposes deposit restrictions portion a slope completes the last steps of setup and the Prudential Regulation Authority oregon Financial Conduct Authority measure whether it is acceptable to afloat run arsenic a full-fledged bank.

Importantly, having a afloat banking licence would let Revolut to commencement lending successful the U.K., and clasp much than £50,000 successful lawsuit deposits. The institution has 12 cardinal customers successful the U.K.

News of the hold comes arsenic Revolut, with much than 65 cardinal customers worldwide, has moved aggressively to grow beyond Britain. The institution already has a banking licence successful the European Union, and it operates successful Australia, Japan, New Zealand, Singapore, Brazil, and the U.S. Just past week, it launched operations successful India; it is besides astir to commencement operating successful Colombia successful 2026, has plans to motorboat successful Argentina and Mexico, and wants to participate Africa (first with South Africa), and has an in-principal payments licence successful the UAE.

The institution has grand ambitions, aiming to scope 100 cardinal customers by mid-2027, and participate implicit 30 caller markets by 2030.

“We are progressing done the last stages of mobilization and proceed to enactment constructively with the PRA,” a Revolut spokesperson said successful an emailed statement. “Given Revolut’s planetary scale, this is the largest and astir analyzable mobilization ever undertaken successful the U.K. A thorough reappraisal is an expected portion of the process, and getting this close is much important than rushing to conscionable a circumstantial date.”

Per its past annual report, Revolut reported nett net of $1 cardinal (£790 million) successful 2024, portion revenues accrued 72% to $4 cardinal (£3.1 billion) successful the year. The institution besides launched a crypto exchange, Revolut X, portion of its Wealth division, which saw gross emergence 298% to $647 cardinal successful 2024 from conscionable $158 cardinal successful 2023.