Revolut’s UK Banking License Delayed Over Risk Controls

The Bank of England has delayed London-based fintech giant Revolut’s long-awaited full banking license due to regulatory concerns over whether the company can maintain adequate risk management controls during its rapid international expansion, the Financial Times reported.

Why the Bank of England Is Hesitating

The Bank of England wants Revolut to commit to upgrading its internal risk management systems to match its global growth trajectory before granting full regulatory approval. Regulators are currently scrutinizing the fintech’s compliance and operational controls across both its domestic UK operations and its international entities.

The “Mobilization” Bottleneck

Although Revolut received conditional approval to obtain a UK banking license over a year ago, the company remains stuck in the “conditional” or mobilization phase. This transitional step typically lasts 12 months, during which regulators impose strict deposit limits while assessing whether the startup is fully prepared to operate as a traditional bank.

What Is at Stake for Revolut?

Securing a full banking license is a critical milestone for the company’s business model. It would allow Revolut to launch lending services in the UK and remove the current restriction that prevents it from holding more than £50,000 in individual customer deposits. The fintech currently serves 12 million customers in its home market.

Aggressive Global Expansion vs. Domestic Compliance

The regulatory delay comes as Revolut, which boasts more than 65 million customers globally, aggressively scales its international footprint. The digital bank already holds a banking license in the European Union and operates in major markets including the US, Australia, Japan, New Zealand, Singapore, and Brazil. Just last week, it expanded into India, with plans to launch in Colombia by 2026, followed by entries into Argentina, Mexico, and South Africa, alongside an in-principle payments license in the UAE.

Ambitious Growth Targets

The company continues to pursue grand ambitions, aiming to cross the 100 million customer threshold by mid-2027 and establish a presence in over 30 new markets by 2030.

Revolut’s Response and Financial Performance

“We are progressing through the final stages of mobilization and continue to work constructively with the PRA,” a Revolut spokesperson said in an emailed statement. “Given Revolut’s global scale, this is the largest and most complex mobilization ever undertaken in the U.K. A thorough review is an expected part of the process, and getting this right is more important than rushing to meet a specific date.”

According to its latest annual report, Revolut posted a net profit of $1 billion (£790 million) in 2024, driven by a 72% surge in revenue to $4 billion (£3.1 billion). The company also expanded its Wealth division by launching the dedicated crypto exchange Revolut X, which helped push the division’s revenue up 298% to $647 million in 2024, up from $158 million the previous year.