FT: UK regulator delays Revolut's issuance of full banking license

British regulators are delaying the issuance of a full banking license to Revolut, Europe's most valuable startup, the FT has learned. According to its information, the authorities have concerns about the startup's ability to manage risks, given its rapid international expansion. Revolut co-founder Nick Storonsky, as it became known in October, changed his residency from the UK to the UAE. Revolut told Oninvest that it remains "committed to the UK" and that Storonsky spends as much time in the country "as is necessary in his position."

The Bank of England's Prudential Regulation Authority (PRA) is scrutinizing the strength of Revolut's controls in the UK and beyond, which has caused the process of granting the startup a full banking license to drag on for more than a year, according to Financial Times sources. The regulator has asked Revolut to guarantee that it will build an infrastructure for risk management on a scale that matches the company's ambitious plans to develop in international markets, the newspaper wrote, citing three sources.

Revolut remains committed to the UK: the company just opened a new headquarters in London in September and is investing £3 billion in its operations in the country. The company said this on October 14 in response to Oninvest's request for information about its co-founder Nick Storonsky's move to the UAE, which was disclosed in the documents of his family company Storonsky Family LTD. Storonsky still has a home in the UK and spends the time in the country that he "needs in his position," Revolut also stated. That time is "balanced with the active travel required of a global CEO supporting our 39 markets," the startup added.

Revolut is Europe's most valuable startup. It received a banking license in the UK in July 2024 after a three-year period of struggle with regulators. However, it is still subject to "mobilization phase" restrictions: in particular, the startup's banking division can only hold £50,000 in deposits. Obtaining a full banking license will allow Revolut to enter the attractive UK loan market by making its customers' deposits generate revenue, the FT noted.

In September, Storonsky said that obtaining a full banking license in the UK was Revolut's "number one priority," the FT reported. The billionaire called it a mistake that the company prioritized growth over licensing in the early stages of development, the newspaper added.

According to the PRA, the "mobilization phase" usually lasts 12 months, but in Revolut's case the process has been going on for more than 14 months, the Financial Times said. However, both the regulator and Revolut have reported that there is no fixed period and the phase can last longer, especially in the case of larger and more complex companies, the FT added.

Revolut has a banking license in Europe, obtained in Lithuania, as well as in Mexico. Colombian authorities allowed Revolut to open a bank in September, but the company will need additional approvals to lend in that market, the FT reported. The PRA takes into account, among other things, that it is the lead regulator for Revolut, so approval of a full banking license in the UK is likely to trigger a wave of similar approvals in other countries, two of the paper's interlocutors said.

Revolut declined to comment further to the FT, but pointed to its announcement in July: the startup said then that it was "progressing through the final stages of mobilization" and working "constructively" with the PRA. The Bank of England Authority declined to comment to the paper.

This article was AI-translated and verified by a human editor