Revolut is faced with yet another hurdle before it can operate as a fully-licensed bank in the UK as regulators flag concerns over its risk controls, according to reports.
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have expressed concern over how the fintech giant handles its cross-border payments, as reported by the Financial Times.
According to the fintech, Revolut is supported in over 160 countries and regions, with international remittance as one of its key early selling points that allowed it to become the UK’s most valuable private tech company.
The company, which holds several banking licences outside of the UK, has long-sought authorisation in its home market, where it has around 10 million customers.
Revolut faced highly publicised delays in securing initial approval from regulators, with issues including compliance and revenue questions raised by its former auditor BDO.
The company was approved for a banking licence in the UK in July 2024, at which point it entered mobilisation, an interim period wherein a newly licensed bank must prove to regulators it can meet their requirements before it can actual operate as a bank.
This period, according to the Bank of England, typically lasts between three and 12 months, but in Revolut’s case it has already been 15 months.
UKTN has contacted Revolut for comment.
