Revolut's quest for a complete º£½ÇÊÓƵ banking licence has encountered another obstacle as regulators demand additional details regarding the fintech's risk controls given its rapid international expansion.
Bank of England officials have requested assurances from the digital banking giant that it will strengthen its risk management framework to align with its global growth strategy, as reported by .
City AM disclosed earlier this year that the group was poised to exceed its 12-month mobilisation phase – the timeframe after licence approval to become fully operational – in July, due to the application's complexity and magnitude.
Revolut has stated it was "progressing through the final stages of mobilisation" and collaborating "constructively with the PRA".
The $75bn fintech – which will represent the largest mobilisation ever attempted in the º£½ÇÊÓƵ – has also declared "getting this right is more important than rushing to meet a specific date".
In theory, the banking regulator cautions that if a new bank cannot complete mobilisation within 12 months, or to the necessary standards, it may take action to withdraw authorisation.
However, the Prudential Regulation Authority (PRA) acknowledges it is not a rigid timeframe and can extend longer for complex organisations.
Zopa Bank obtained its licence at the end of 2018, but had to wait 18 months before its mobilisation restrictions were removed.
Reeves and Bailey's Revolut row
The regulator's requirements concerning risk management, as reported by the Financial Times, come after reports that Rachel Reeves had attempted to intervene in the company's licence application.
The Chancellor had organised a meeting with Revolut and the regulators, which was later prevented by Bank of England Governor Andrew Bailey.
Reeves attended the launch of Revolut's global headquarters last month, where she praised the firm's £3bn investment into the º£½ÇÊÓƵ.
Nik Storonsky, Revolut's recently UAE-relocated chief executive and co-founder, declared at the new office launch that securing a full banking licence in the º£½ÇÊÓƵ remained the company's "number one priority".
The outspoken fintech entrepreneur has criticised the º£½ÇÊÓƵ's regulatory environment in recent years, targeting what he calls "extreme bureaucracy".
When asked about a potential London listing for Revolut, Storonky described it as "not rational" compared to the greater liquidity available abroad.
