Revolut’s UK banking license may be delayed due to risk management concerns | TechCrunch

Revolut, the U.K.-based fintech, is facing challenges in its goal to secure a full banking license in the U.K. due to the central bank’s apprehensions regarding the startup’s risk management capabilities amidst rapid international growth, as reported by the Financial Times.

The Bank of England has requested that Revolut enhance its risk management framework to parallel its expansion before granting the banking license, following scrutiny of both domestic and international risk protocols, according to the Financial Times.

Although Revolut obtained approval to receive a banking license in the U.K. over a year ago, it remains in the “mobilization” phase, which generally lasts 12 months and limits deposit acceptance as the bank finalizes its preparations. This phase allows the Prudential Regulation Authority and Financial Conduct Authority to evaluate its readiness for full banking operations.

Acquiring a comprehensive banking license would empower Revolut to commence lending in the U.K. and enable it to manage customer deposits exceeding £50,000. The fintech currently serves 12 million customers in the U.K.

This setback emerges as Revolut, boasting over 65 million customers globally, aggressively pursues expansion beyond the U.K. The company holds a banking license within the European Union and operates in various countries such as Australia, Japan, New Zealand, Singapore, Brazil, and the U.S. Recently, it initiated services in India; it is also set to launch operations in Colombia in 2026, while eyeing market entries in Argentina, Mexico, and Africa (with South Africa as its first target). Moreover, it holds in-principle payment licenses in the UAE.

With an ambitious goal of hitting 100 million customers by mid-2027 and accessing over 30 new markets by 2030, the company has grand aspirations.

A Revolut representative stated, “We are making progress through the last stages of mobilization and are engaging positively with the PRA. Given the global nature of Revolut, this is the most extensive and intricate mobilization ever conducted in the U.K. A comprehensive review is a standard procedure, and ensuring correctness is more crucial than rushing to a specific deadline.”

According to its most recent annual report, Revolut posted a net profit of $1 billion (£790 million) in 2024, marking a 72% rise in revenues to $4 billion (£3.1 billion) that year. The company also unveiled a crypto exchange, Revolut X, part of its Wealth division, which experienced a revenue increase of 298%, climbing to $647 million in 2024 from just $158 million in 2023.