UK Is Delaying Revolut’s Banking License Over Risk Management Concerns
Revolut’s dream of becoming a fully licensed bank in its home market faces yet another setback. UK is delaying Revolut’s banking license over risk management concerns, raising new questions about the fintech giant’s ability to balance fast growth with compliance stability.
Image Credits:Revolut
Central Bank Pressures Revolut To Strengthen Risk Systems
According to the Financial Times, the Bank of England has asked Revolut to reinforce its risk management framework before it can be granted a full banking license. Regulators worry that the company’s current systems might not be robust enough to handle the demands of its rapidly expanding international operations.
The Prudential Regulation Authority (PRA) is also reportedly reviewing Revolut’s internal controls, both in the U.K. and overseas, to ensure they meet the country’s strict regulatory standards.
Revolut Still Stuck In Mobilization Phase
Revolut was granted initial approval for a banking license over a year ago. However, it remains in the “mobilization” phase — a temporary stage where firms face restrictions on accepting deposits and lending while they finalize setup requirements.
This phase usually lasts 12 months, but UK’s decision to delay Revolut’s banking license over risk management concerns means the process could stretch further. During this time, the PRA and the Financial Conduct Authority (FCA) assess whether Revolut is ready to operate as a full-fledged U.K. bank.
Why The License Matters
Securing a full banking license would allow Revolut to hold customer deposits exceeding £50,000 and begin offering loans in the U.K. The company currently serves over 12 million British customers, making this license a critical step toward becoming a complete financial institution.
Without it, Revolut remains a fintech player offering payment, investment, and currency services — but not full-scale banking.
Global Expansion Adds To Regulatory Pressure
The timing of the delay comes as Revolut continues to expand aggressively outside the U.K. The company already operates under a full European Union banking license and serves customers across Australia, Japan, New Zealand, Singapore, Brazil, and the U.S.
Just last week, Revolut launched in India and is preparing to enter Colombia in 2026. Expansion plans also include Argentina, Mexico, and Africa — beginning with South Africa — alongside an in-principle payments license in the UAE.
This relentless expansion has regulators concerned that Revolut’s risk and compliance infrastructure may not be scaling fast enough to keep up.
Revolut Aims For 100 Million Users By 2027
Despite the regulatory hurdles, Revolut remains ambitious. The fintech aims to reach 100 million users by mid-2027 and expand into over 30 new markets by 2030. With more than 65 million global users, it’s already one of the fastest-growing financial technology companies in the world.
A spokesperson for Revolut said the company is “progressing through the final stages of mobilization” and is working closely with the PRA to meet all regulatory expectations.
Revolut’s Response To The Delay
In an emailed statement, Revolut emphasized that the current review process is a normal part of becoming a licensed bank.
“Given Revolut’s global scale, this is the largest and most complex mobilization ever undertaken in the U.K. A thorough review is an expected part of the process, and getting this right is more important than rushing to meet a specific date,” the spokesperson said.
The company maintains confidence that its U.K. banking license will eventually be approved once it meets all risk management and operational readiness standards.
What This Means For Customers
For existing customers, this delay doesn’t affect daily services like payments, transfers, or investments. However, it does mean that Revolut users in the U.K. will have to wait longer for traditional banking products such as loans and insured high-deposit accounts.
Analysts say this delay could also slow Revolut’s momentum in competing with legacy banks like Barclays, HSBC, and Lloyds, all of which already have mature compliance systems.
Regulatory Tightrope For Fintech Giants
Revolut’s situation highlights a broader issue in global fintech: regulators are tightening oversight as startups scale internationally. The UK’s delay of Revolut’s banking license signals that even successful fintechs must prioritize risk management over rapid expansion.
The case may also serve as a benchmark for other digital banks seeking full authorization in major financial markets.
While Revolut’s rapid rise has transformed it into one of the U.K.’s most valuable startups, its future as a fully licensed bank depends on satisfying the Bank of England’s concerns.
Until then, UK’s decision to delay Revolut’s banking license over risk management concerns serves as a reminder that growth and regulation must evolve hand-in-hand — especially in the fast-moving world of digital finance.
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