UK delays Revolut’s banking license over risk management concerns

U.K. fintech Revolut has reached another roadblock to its long-standing mission of becoming a true bank in its home country: Its full banking license has been suspended because the country’s central bank is concerned about whether the startup can maintain risk management controls in the face of its rapid international expansion.

the The Bank of England wants Revolut to comply to build its risk management suite to match its international growth before the regulator can approve a full banking licence, while the Prudential Regulation Authority investigates fintech controls in the UK and internationally, according to the Financial Times.

Revolut got approved Obtained a banking license in the United Kingdom more than a year agobut it is still in what is called “Packing“Stage. This stage typically lasts for 12 months and imposes deposit restrictions while the bank completes the final steps of preparation and the Prudential Regulation Authority or Financial Conduct Authority assesses whether it is ready to operate fully as a full-fledged bank.

Importantly, obtaining a full banking license will allow Revolut to start lending in the UK, holding more than £50,000 of customer deposits. The company has 12 million customers in the UK

News of the delay comes as Revolut, which has more than 65 million customers worldwide, has moved aggressively to expand beyond Britain. The company already holds a banking license in the European Union, and operates in Australia, Japan, New Zealand, Singapore, Brazil and the United States. Operations in India; It is also about to start working Colombia In 2026, it has plans to launch in Argentina and Mexico, wants to enter Africa (first with South Africa), and has an initial payments license in the UAE.

The company has Big ambitionsThe company aims to reach 100 million customers by mid-2027, and enter more than 30 new markets by 2030.

“We are progressing through the final stages of mobilization and continue to work constructively with the PRA,” a Revolut spokesperson said in an emailed statement. “Given the global scale of Revolut, this is the largest and most complex mobilization operation ever undertaken in the UK. A thorough review is an expected part of the process, and getting this right is more important than rushing to meet a deadline.”

At the end of it Annual reportRevolut reported net profits of $1bn (£790m) in 2024, while revenues increased 72% to $4bn (£3.1bn) in the year. The company also launched a cryptocurrency exchange, Revolut