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Revolut faces reported rejection for a UK banking license

Revolut faces reported rejection for a UK banking license

The Bank of England is planning to reject Revolut’s long-standing application for a banking license in the UK, according to the Telegraph.

The payments giant has been campaigning for a UK banking license for two years, and chief executives expressed hope this year that it would be granted soon.

According to the Telegraph, the Bank of England's Prudential Regulation Authority (PRA) told the Treasury in March that it planned to issue a statutory warning to the firm over concerns about the company's balance sheet. 

Following a six-month delay, Revolut finally filed its accounts in March. However, auditor BDO flagged concerns that it could not verify £477m of revenue, nor vouch for their “completeness or occurrence”, due to the configuration of Revolut's internal IT systems. The warning has not yet been issued and Revolut is in urgent talks to rescue the license.

Revolut CEO, Nikolay Storonsky stated earlier this month that the delay in the issuance of the license was due to regulators being spooked by the ongoing banking crises stemming from Silicon Valley Bank and Credit Suisse.

If Revolut’s banking license is not approved, it can still operate in the UK, but will not be able to offer mortgages and loans in the country, one of the company’s long-term objectives.

The fintech has been facing challenges on multiple fronts, as earlier this month Revolut CFO Mikko Salovaara quit the company citing personal reasons. Salovaara joined Revolut in January 2021, at the same time the company submitted its banking license application.

Comments: (1)

A Finextra member
A Finextra member 10 July, 2023, 15:04Be the first to give this comment the thumbs up 0 likes

The Bank of England is correct. Recent fraud from the bank and accounting irregularities show weekness in controls and leadership. Similarlry the SMC is sketchy??