Revolut’s attempts to secure banking licence thrown into doubt by Bank of England

Revolut’s attempts to secure banking licence thrown into doubt by Bank of England

The destiny of Revolut’s makes an attempt to safe a long-awaited banking licence from Metropolis regulators was thrown into additional doubt final evening after it emerged that the Financial institution of England was minded to reject the corporate’s utility.

The London-based group is the darling of Britain’s fintech trade and has been looking for approval for a licence from the Financial institution’s Prudential Regulation Authority and the Monetary Conduct Authority for greater than two years.

Nevertheless, a supply mentioned final evening that the PRA had knowledgeable the Treasury that it was minded to reject Revolut’s utility, though they mentioned {that a} closing determination had not been made.

The Day by day Telegraph was the primary to report the event.

Failure to achieve a licence from Revolut’s house regulators would pose an impediment to the group’s ambitions to increase its operations in different international locations. It could even be a blow to Britain’s wider fintech trade and to Rishi Sunak’s authorities, which has sought to champion the tech sector.

Revolut, the PRA and the Treasury all declined to remark.

Revolut grew to become one in every of Europe’s greatest fintechs when it was valued at $33 billion in July 2021, after elevating $800 million from buyers together with Softbank.

It was arrange in 2015 by Nik Storonsky, who’s its chief government, and Vlad Yatsenko as a cross-border cash switch platform however is now a sprawling enterprise, with operations spanning cryptocurrency buying and selling and pet insurance coverage.

The corporate has greater than 28 million prospects globally, together with six million within the UK, and has greater than 6,000 workers.

This month it emerged that Revolut’s chief monetary officer and UK banking boss have been leaving earlier than the conclusion of the corporate’s lengthy look ahead to a UK financial institution licence.

In March, Revolut’s exterior auditors, BDO, raised issues in its 2021 accounts in regards to the “completeness and incidence” of near £500 million of turnover and its “underdeveloped monetary management surroundings”.

It hopes to file new accounts for 2022 in the summertime.

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