Revolut banking licence bid goes down to the wire as key deadline looms
Revolut is facing a fresh regulatory headache in the UK amid mounting expectations it may miss a key deadline in the ongoing process to become a fully operational bank.
The digital banking juggernaut received the green light for its UK banking licence from Britain’s banking watchdog last year after a three-year wait, which triggered a 12-month “mobilisation” stage before full authorisation is granted.
But insiders have raised concerns that the firm may not be on track to meet the provisional 25 July end date for the interim phase, raising fears a full licence may be delayed.
“I don’t expect the deadline to be hit,” one source familiar with the matter told CityAM, adding Revolut’s size was compounding its application struggles as it was the first to enter the process with over 500,000 customers.
Whilst the deadline is not a statutory limit, the Prudential Regulatory Authority’s authorisation process states mobilisation “should not take longer than 12 months” and that it “does not normally allow new banks to remain in mobilisation beyond a 12-month period”.
“If the new bank is unable to complete mobilisation within 12 months, or to the required standard, we may take steps to remove the new bank’s authorisation or they may decide to apply to cancel their authorisation,” the PRA’s guidance warns.
The PRA and FCA declined to comment. A spokesperson for Revolut said it would prioritise passing the necessary regulatory reviews to obtain a licence rather than “rushing to meet a specific date”.
They added: “We are progressing through the final stages of mobilisation and continue to work constructively with the PRA. Given Revolut’s global scale, this is the largest and most complex mobilisation ever undertaken in the UK.
“We are looking forward to launching a fully regulated UK bank for our millions of UK customers this year.”
Revolut chair: Formal start ‘during 2025’
In Revolut’s annual report, chair Martin Gilbert said he anticipated “formally starting” operations as a UK bank “during 2025.”
The mobilisation stage acts as a ‘soft launch’ for a new bank by providing conditions it must meet before going officially live. These include finalising IT systems, recruiting senior staff, securing full capital, and establishing robust risk and compliance frameworks.
As efforts to expand in the UK falter, sources told CityAM international expansion has become a key focus of Revolut’s future roadmap.
“There is a general feeling of frustration” amongst executives at the $45bn fintech, one source said, citing challenges it has faced in Britain.
Amid regulatory troubles, chief executive Nik Storonsky has blasted the UK’s “extreme bureaucracy”.
The fintech’s boss has been outspoken on issues facing the UK, even blasting the notion of a listing in London as “not rational” due to deeper liquidity overseas.
The firm announced Paris as its Western Europe HQ in May, but kept London as a global base.
Sid Jajodia, Revolut’s chief banking officer, praised France’s “dynamic banking ecosystem” and cited strong regulatory framework as key factors behind the move.
The new woes follow the Financial Times revealing the fintech was yet to receive regulatory approval for a consumer credit licence, adding to the hurdles the neobank still must cross to become a fully realised UK lender.