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Revolut’s long-awaited full UK banking licence has hit another roadblock, as the Bank of England’s Prudential Regulation Authority (PRA) continues to raise concerns about whether the fintech giant’s risk management systems can match the scale of its global expansion.
Revolut’s full UK banking licence delayed
The London-based company, which now counts more than 65 million customers across 40 countries, secured initial approval for a UK banking licence in July 2024 after a protracted three-year process.
However, it remains in what is known as the “mobilisation phase” — a transitional period during which its banking arm is permitted to hold no more than £50,000 in deposits while regulators assess its readiness for full operations.
PRA Pressing for Assurances
According to people familiar with the matter, the PRA is pressing Revolut for assurances that its internal controls — covering areas such as anti-money-laundering systems, IT resilience, and capital adequacy — are robust enough to support the company’s rapid international growth.
The regulator’s caution reflects both the scale and complexity of Revolut’s ambitions: the fintech has secured banking licences in the EU and Mexico, and recently received preliminary approval to establish a bank in Colombia.
It is also exploring the acquisition of a US institution to gain a national banking charter.
Key Factors
A key factor behind the PRA’s scrutiny is Revolut’s potential to set a precedent.
As the UK’s most valuable fintech, its full authorisation could encourage other regulators worldwide to follow suit, accelerating Revolut’s global banking push.
Officials are therefore intent on ensuring that its systems meet not only domestic but international standards before granting the final green light.
Revolut’s co-founder and chief executive, Nik Storonsky, has acknowledged that the company’s early focus on growth led it to rely on lighter forms of licensing — including e-money and payments licences — rather than full banking authorisations.
Speaking at the opening of Revolut’s new Canary Wharf headquarters, Storonsky described securing a UK banking licence as the firm’s “number one priority”, admitting that earlier shortcuts had resulted in a “worse product”.
The PRA’s mobilisation phase typically lasts around 12 months, but Revolut’s process has now extended beyond 14 months — a timeline both sides describe as flexible, especially for a firm of Revolut’s size and complexity.
In a recent statement, the company said it was “progressing through the final stages of mobilisation” and working “constructively with the PRA”.
Revolut maintains that obtaining its full UK licence by the end of 2025 remains achievable.
But with regulators demanding more robust safeguards and the company pushing ahead with its international rollout, Britain’s most prominent fintech unicorn still has work to do before it can call itself a fully fledged UK bank.
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