UK Delays Revolut’s Banking License Due to Risk Management Issues
U.K. fintech company Revolut is facing a significant hurdle in its quest to secure a full banking license in its home country. The Bank of England has placed the approval on hold, citing concerns about the startup’s ability to manage risks effectively amid its rapid international expansion. As Revolut continues to grow, the central bank is urging the company to enhance its risk management systems before it can fully operate as a bank in the U.K.
Regulatory Concerns Over Risk Management
The Bank of England’s decision to pause Revolut’s banking license approval stems from worries regarding the company’s risk management capabilities. The Prudential Regulation Authority (PRA) is currently investigating Revolut’s controls both in the U.K. and abroad. The fintech received initial approval for a banking license over a year ago but remains in the “mobilization” stage. This phase typically lasts 12 months and includes deposit restrictions while the company finalizes its setup. The PRA and the Financial Conduct Authority are assessing whether Revolut is ready to operate as a fully-fledged bank.
A full banking license would enable Revolut to lend in the U.K. and manage customer deposits exceeding £50,000. With a customer base of 12 million in the U.K., the stakes are high for the company as it seeks to solidify its position in the competitive banking landscape.
Global Expansion Efforts
Despite the regulatory challenges in the U.K., Revolut is aggressively expanding its footprint internationally. The company boasts over 65 million customers worldwide and has already secured a banking license in the European Union. Its operations extend to countries such as Australia, Japan, New Zealand, Singapore, Brazil, and the United States. Recently, Revolut launched its services in India and is preparing to enter the Colombian market in 2026. Additionally, the company has plans to expand into Argentina, Mexico, and Africa, starting with South Africa, while also holding an in-principal payments license in the UAE.
Revolut’s ambitious goal is to reach 100 million customers by mid-2027 and to enter more than 30 new markets by 2030. This aggressive growth strategy highlights the company’s commitment to becoming a significant player in the global fintech sector.
Company Performance and Future Outlook
Revolut’s financial performance has been impressive, as indicated in its latest annual report. The company reported a net profit of $1 billion (£790 million) in 2024, with revenues soaring by 72% to $4 billion (£3.1 billion). A notable contributor to this growth is the launch of Revolut X, a crypto exchange that is part of its Wealth division. This segment saw revenues increase by an astonishing 298%, rising from $158 million in 2023 to $647 million in 2024.
A spokesperson for Revolut stated that the company is making progress through the final stages of mobilization and is working closely with the PRA. They emphasized that given the scale of Revolut’s global operations, this mobilization is the largest and most complex ever undertaken in the U.K. The spokesperson also noted that a thorough review is essential to ensure the company meets regulatory standards, prioritizing accuracy over speed in the approval process.
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