Revolut gets ECB injunction - FT. The startup was launching products too quickly

The European Central Bank last July tightened control over the activities of Europe's most expensive fintech company, Revolut Bank, sources told the Financial Times. According to them, the regulator imposed additional restrictions due to concerns about how quickly the startup approves the launch of new financial products.

Revolut employees were encouraged to bring solutions to market as quickly as possible, the FT's interlocutors said. The company's CEO, Nick Storonsky, called the specialists, who are given a lot of freedom to develop and launch products, "homing missiles," the publication recalls. "They push the button and achieve their goals themselves," the businessman said.

As a result, the ECB temporarily restricted the right of Revolut's European division to expand its product line in the European Economic Area until the bank eliminates the identified "shortcomings" in their approval procedures, the FT writes. The regulator demanded to check whether the company has enough employees and whether they have the necessary qualifications. The startup was required to conduct an independent review of the risk management, compliance and legal functions responsible for bringing new services to the European market. In addition, the regulator banned Revolut from making acquisitions and attracting new clients outside Europe.

A source close to Revolut said the company has since improved its internal procedures, strengthening its due diligence and controls when approving new products. The FT has not been able to establish whether all restrictions have been lifted. However, over the past year, the startup has launched services such as mortgages and accounts for teenagers in Europe, opened bank branches, and continued to build its customer base, the publication said.

The ECB declined to comment when asked by the FT, Revolut said it was "in constant and constructive dialog with regulators" and "regularly strengthens internal controls and operational processes".

The ECB intervention came as Revolut was preparing a share sale that valued the company at $75bn, the FT writes, and it is now considering a new deal that would bring the valuation to $115bn, according to the publication's sources. If the company were to trade on the stock exchange, it would make it Europe's seventh largest bank by market capitalization - more expensive than Barclays, BNP Paribas and CaixaBank.

Revolut has told investors that it intends to eventually launch an IPO with a valuation of $200 billion, the Financial Times wrote in April. At such a value, it would outpace, among others, Switzerland's UBS. The listing will take place no earlier than 2028, Storonsky said .

British regulators also feared that Revolut's risk management systems could not keep up with the company's growth rate as it rapidly expands its line of digital services. However, after several years of discussions, the fintech still received a full-fledged banking license in the country - this happened in March.

At the same time Revolut applied for a license in the US. The startup has had a European license since 2018, and since January 2026, it has also had a license in Mexico.

In April, the Italian regulator fined the company €11.5 million for providing customers with misleading information about the fees and terms of investment products.

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