Revolut Is Under Scrutiny Again Due to Its Rapid Product Rollouts — FT

The Bank of England has demanded an audit of Revolut’s procedures for approving new fintech services, according to sources cited by the Financial Times. Just the day before, it was reported that the company had launched its first loan product in the country—after receiving a banking license.

The Bank of England has issued a so-called Section 166 directive regarding Revolut—to assess the risks associated with the rapid launch of new financial products, the FT reports, citing sources. This document requires the company to engage independent consultants to examine its internal systems and controls.

Based on the results, a report is typically prepared with recommendations for necessary improvements, but if violations are identified, there may be fines as well as “other enforcement measures,” the publication explains.

The newspaper had previously reported that the Bank of England had delayed granting the neobank a license due to concerns about whether its risk management systems could keep pace with the rapid expansion of its overseas operations.

Revolut and the Bank of England declined to comment to the FT.

As this publication learned in July, Revolut had received a similar directive from the European Central Bank a year earlier. The regulator demanded an audit and imposed additional restrictions on the startup due to concerns about how quickly it approves the launch of new financial products, the publication reported at the time.

The company’s CEO, Nick Storonsky, referred to the specialists—who are given a great deal of freedom in developing and launching products—as “self-guided missiles,” the newspaper noted. “They press the button and achieve their goals on their own,” the businessman said.

In just over ten years of operation, Revolut has attracted more than 80 million customers, and its valuation has reached $115 billion. The company has already surpassed three of the four largest traditional banks in the U.K. in terms of market value, the FT notes.

The neobank received its British license in March after years of waiting. This was a key factor in Revolut’s plans to expand its presence from 40 to 70 countries by 2030, the newspaper reports. The approval allowed the company to accept deposits and enter the traditional lending market. The day before, on October 26, Revolut announced the launch of unsecured consumer loans in the country ranging from £2,000 to £25,000.

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