UK is delaying Revolut's banking license over risk management concerns | TechCrunch

"U.K. fintech Revolut has hit yet another roadblock to its longstanding mission of becoming a real bank in its home country: Its full banking license is on hold because the country's central bank is concerned over whether the startup can maintain its risk management controls in the face of its blazing fast international expansion. The Bank of England wants Revolut to commit to building its risk management stack to match its international growth before the regulator can approve a full banking license"

"Revolut got approval to receive a banking license in the U.K. more than a year ago, but is still in the so-called " mobilization " stage. This phase typically lasts 12 months and imposes deposit restrictions while a bank completes the final steps of setup and the Prudential Regulation Authority or Financial Conduct Authority assess whether it is ready to fully operate as a full-fledged bank."

"News of the delay comes as Revolut, with more than 65 million customers worldwide, has moved aggressively to expand beyond Britain. The company already has a banking license in the European Union, and it operates in Australia, Japan, New Zealand, Singapore, Brazil, and the U.S. Just last week, it launched operations in India; it is also about to start operating in Colombia in 2026, has plans to launch in Argentina and Mexico,"

Revolut's full U.K. banking license remains on hold because the Bank of England is concerned the company cannot maintain adequate risk management controls amid rapid international expansion. The regulator requires Revolut to build a risk management stack that aligns with its growth, while the Prudential Regulation Authority is investigating controls in the U.K. and internationally. Revolut was approved for a banking license over a year ago but remains in a mobilization phase with deposit restrictions. A full license would enable U.K. lending and holding deposits above £50,000. Revolut has 12 million U.K. customers and over 65 million globally and is pursuing aggressive market expansion.

Read at TechCrunch