Once a fintech darling, Revolut now faces mounting pressure as it appears poised to miss a critical licensing deadline — again.
The news
According to City A.M., Revolut is set to miss a key July deadline tied to its long-running application for a UK banking license — a process it initiated back in early 2021. The delay is triggering renewed doubts about the firm’s regulatory strategy, financial transparency, and internal governance.
This isn’t the first stumble. In 2023, UK regulators raised red flags about weaknesses in Revolut’s auditing practices and board structure. Despite vocal commitments from Revolut to address those gaps, little public progress has emerged — and this missed milestone is prompting speculation that regulatory approval may not be imminent at all.
Why this matters
Revolut, with over 40 million customers and a global valuation once as high as $33 billion, is arguably the most high-profile fintech yet to secure a full UK banking license. Without it, the company is restricted in what services it can offer in its home market — particularly deposit-taking, lending, and access to the Bank of England’s infrastructure.
A license would not only expand its UK operations, but would also strengthen its position in other jurisdictions where regulators are watching London as a litmus test.
Beneath the surface: Why the delays?
1. Accounting and audit concerns
In 2023, Revolut’s auditors BDO were unable to verify a significant portion of the company’s revenue. While Revolut claimed these issues were overstated, the lack of transparent resolution may have undermined regulator trust.
2. Governance structure
Revolut has been criticized for maintaining a founder-centric decision-making process, with concerns around board independence, risk management, and senior oversight. For regulators, especially the UK’s Prudential Regulation Authority (PRA), these issues signal possible long-term control weaknesses.
3. Regulatory inconsistency
While Revolut is licensed in Lithuania, Ireland, and other EU countries, each jurisdiction has its own standards and timelines. The UK’s is arguably the toughest — and Revolut’s pan-European model may be colliding with local regulatory expectations.
Critical reflections
Is Revolut over-engineered for fast growth, underbuilt for stability?
Revolut’s engineering-first, “move fast” culture has enabled it to launch across multiple countries and verticals — from crypto to travel insurance to stock trading. But regulatory trust is earned slowly, and Revolut’s tech-led mindset may be clashing with the UK’s risk-averse approach.
Would a denial hurt Revolut’s business model?
Yes and no. Without a UK license, Revolut can’t grow its lending or deposit operations domestically — and faces perception issues among partners. But operationally, the firm is already acting like a bank in other regions, and the impact may be more reputational than structural.
Could this affect a future IPO?
Definitely. A public listing — especially in the UK or U.S. — would require Revolut to demonstrate regulatory compliance, audit clarity, and sustainable governance. Continued licensing delays may lower institutional investor confidence, or lead to valuation haircuts.
The bigger picture
Revolut’s troubles come at a time when other fintechs are gaining ground:
- Monzo recently became profitable and continues expanding its lending arm
- Starling Bank posted strong profitability and remains fully licensed
- N26 exited the UK but remains licensed in the EU, citing post-Brexit complications
In this context, Revolut’s regulatory limbo stands out — and not in a good way.
Bottom line
Revolut’s journey from startup to global fintech force has been meteoric — but its struggles to meet traditional regulatory expectations may be the biggest test yet of its long-term viability.
If the company cannot secure its UK banking license soon, it risks falling into a credibility gap — too big to be scrappy, but not yet regulated enough to be trusted.
The fintech world is watching. And so are the regulators.
