Revolut’s full UK banking licence is being held up by regulators’ concerns over whether its risk controls can keep pace with the rapid growth of its overseas operations.
Bank of England officials have sought commitments from the fintech group, which has 65 million customers in about 40 countries, that it will build its risk management infrastructure to match its ambitious international expansion plans, according to three people familiar with the matter.
Revolut, Europe’s most valuable start-up, was approved for a UK banking licence in July 2024 after a three-year wrangle with regulators but remains subject to restrictions during a “mobilisation phase”.
A full banking licence would allow Revolut to enter the lucrative UK lending market, putting to work its significant customer deposits.
RM Block
The BoE’s Prudential Regulation Authority, the lead regulator of London-headquartered Revolut, is responsible for monitoring how banks manage risks around money laundering controls, IT systems and how much capital they have.
The PRA is scrutinising the robustness of Revolut’s controls both in Britain and internationally before awarding it a licence to operate as a fully fledged bank in the UK, which is why the process has dragged on for more than a year, according to the people familiar with the matter.
Until it exits the mobilisation phase and secures the full licence from the PRA and the Financial Conduct Authority, the fintech’s banking division is allowed to hold only £50,000 in total deposits.
As Revolut’s lead regulator, the PRA was mindful that approving a full UK banking licence was likely to trigger a wave of similar accreditations in other countries that would follow its lead, two of the people added.
At the unveiling of its new Canary Wharf headquarters last month, Revolut announced plans to enter 30 new countries by the end of the decade, as part of a push to reach 100 million customers.
At the same event, co-founder Nik Storonsky said that securing a full UK banking licence was Revolut’s “number one priority” and that it had been a mistake for the company to prioritise growth over becoming properly licensed in its early stages.
“When we started international expansion many years ago, we tried to shortcut our banking licences and apply for lighter licences, e-money licences, FX licences, payment licences ... and it was a worse product,” said Storonsky, who still owns 25 per cent of the company, according to insiders.
The PRA says the mobilisation phase usually takes 12 months, but Revolut has been engaged in the licensing process for more than 14 months.
Revolut and the PRA have said that mobilisation is not a fixed period, and that it can take longer, particularly for larger and more complex companies.
Despite awaiting full accreditation in its home market, Revolut has clinched banking licences in the EU, through the central bank of Lithuania, and in Mexico. Authorities in Colombia this month gave Revolut the green light to set up a bank but further approvals will be required before it can start lending there.
Revolut also has its sights set on the US, where it is exploring buying a bank to get access to a national charter which will allow it to lend in all 50 states, the FT previously reported.
Revolut declined to comment but pointed to a statement it made in July in which it said it was “progressing through the final stages of mobilisation” and was working “constructively with the PRA”.
“Given Revolut’s global scale, this is the largest and most complex mobilisation ever undertaken in the UK. A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date,” it said.
Revolut said in its annual report, published in July, that it hoped to secure full accreditation in the UK before the end of 2025.
The PRA declined to comment. – Copyright The Financial Times Limited 2025
