(Reuters) -London-based digital finance firm Revolut’s UK banking licence is being held up due to regulators’ concerns over whether its risk controls can keep pace with the rapid growth of its overseas operations, the Financial Times reported on Tuesday.
Revolut received a UK banking licence with some restrictions in 2024, which was a step forward in its journey towards eventually listing on the stock market.
Bank of England officials have sought commitments from Revolut that it will build its risk management infrastructure to match its ambitious international expansion plans, the newspaper said, citing undisclosed sources.
Britain’s banking regulator, the Prudential Regulation Authority, 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, the report added.
Reuters could not immediately verify the report.
Revolut declined to comment but pointed to a July statement in which it said it was “progressing through the final stages of mobilisation.”
“Given Revolut’s global scale, this is the largest and most complex mobilisation ever undertaken in the UK,” it said at the time, adding that “a thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date.”
The Bank of England declined to comment, saying it does not comment on individual firms.
Nik Storonsky, Revolut’s CEO and co-founder, said in September that his top priority was to get a UK banking licence – a process running for several years – to transfer customers into the new bank and offer them credit products.
Executives say they hope to obtain the final licence this year.
(Reporting by Mrinmay Dey in Bengaluru, additional reporting by Sam Tabahriti in London; Editing by Janane Venkatraman, Sonia Cheema and Joe Bavier)
