Regulators Hold Up Revolut’s UK Bank Approval on Risk Controls

UK regulators have delayed Revolut’s full banking licence approval due to concerns over risk controls and financial reporting, with auditors warning that revenues of £500 million—around 75% of the group’s income—“may be materially misstated,” complicating the Prudential Regulation Authority’s (PRA) assessment[9]. Industry experts like Webull UK CEO Nick Saunders criticize the regulatory process as “real-time dysfunction,” arguing the 12-month mobilisation period is insufficient for Revolut’s complex global operations and warning that such delays threaten the UK’s fintech competitiveness[5]. Despite these challenges, Revolut remains engaged with regulators, and its chair indicated operations could begin during 2025, though no firm timeline has been confirmed[

## LIVE NEWS UPDATE: Revolut’s UK Bank Approval Delayed by Regulators—Competitive Landscape Shifts **Regulators are holding up Revolut’s full UK banking licence due to concerns over whether the fintech’s risk management controls can keep pace with its rapid global expansion, leaving the company stuck in the “mobilisation” phase more than a year after initial approval—despite industry guidance that this stage typically lasts no longer than 12 months**[1][6][7]. With over 10 million UK customers and 65 million globally, Revolut’s inability to fully launch as a bank means it cannot offer core services like loans and mortgages domestically, ceding ground to incumbent banks and rival neobanks

In the ongoing saga of Revolut's UK banking license, consumer and public reaction has been mixed, with some expressing frustration over the regulatory scrutiny. Webull UK CEO Nick Saunders has criticized the delays, calling it "regulatory dysfunction in real-time," which he believes could undermine the UK's fintech ambitions and lead to companies relocating abroad[5]. Meanwhile, Revolut's chair, Martin Gilbert, has indicated that operations may begin in 2025, despite the challenges posed by the complex regulatory process[3].

UK regulators, specifically the Prudential Regulation Authority (PRA), have delayed Revolut's full UK banking licence approval due to concerns over its global risk controls and financial reporting, including auditor BDO's warning that £500 million of revenues may be materially misstated, representing 75% of the group's income[6][8]. Despite Revolut's restricted licence granted in 2024 and its extensive ongoing mobilisation phase, regulatory authorities have yet to grant full approval, with Bank of England Governor Andrew Bailey blocking Treasury attempts to intervene, citing the need to maintain regulatory independence[4]. Revolut's chairman anticipates licensed operations may start during 2025, but no firm licence approval timeline has been confirmed amid continuing scrutiny[3].

## BREAKING: Regulators Hold Up Revolut’s UK Bank Approval on Risk Controls Revolut’s long-awaited UK banking license remains in limbo as the Bank of England demands the fintech demonstrably upgrade its risk controls before granting final approval, with the Prudential Regulation Authority (PRA) scrutinizing both domestic and international operations as the company rapidly expands into 11 new markets—including recent launches in India and planned entries in Colombia, Argentina, Mexico, and South Africa[1]. The fintech, which now serves over 10 million UK customers and 65 million globally, is undergoing the “mobilization” phase—a process regulators say should last no more than 12 months, but which

Regulators in the UK have delayed Revolut’s full banking licence approval due to concerns over risk controls, including issues raised by auditors about potentially misstated revenues totaling £500 million, complicating its expansion plans amid global scrutiny[5][3]. Internationally, Revolut faces pressure to bolster its compliance frameworks, with the European Central Bank urging stronger controls in the EU, while countries like Spain and France reportedly vie to attract the fintech amid UK regulatory challenges[9][11]. Revolut’s CEO Nik Storonsky criticized UK authorities as “extremely bureaucratic,” highlighting the broader tension between fintech innovation and regulatory caution worldwide[11].

Revolut’s UK banking licence delay due to regulatory concerns over global risk controls triggered cautious market reactions, with investor sentiment cooling amid uncertainty. Despite the fintech's rising valuation—recently hitting $75 billion after a secondary share sale—its stock movements have been muted as CEO Nik Storonsky publicly criticized UK regulators as “extremely bureaucratic,” fueling speculation about a potential Nasdaq IPO instead of a London listing[5][7][11]. No dramatic stock price swings were reported yet, but the drawn-out approval process and regulatory scrutiny have tempered enthusiasm.

Regulators have delayed Revolut's UK banking licence approval due to technical concerns over its global risk controls, previously flagged by auditor BDO which questioned the completeness of revenues totaling £500 million, about 75% of the group’s income[7][1]. The Prudential Regulation Authority required Revolut to simplify its complex shareholding structure and address material misstatement risks in its IT systems before granting the licence, which was only approved after Revolut secured a clean audit for 2023 accounts and resolved investor disputes[7][10]. This delay underscores the challenges fintech firms face in meeting stringent UK regulatory requirements for risk management and financial transparency before full banking operations can commence.

UPDATE: As of October 2025, Revolut’s UK banking licence remains in limbo after the Bank of England’s Prudential Regulation Authority signalled it does not plan to approve the application due to unresolved concerns over Revolut’s share structure and financial reporting, with its auditor BDO warning that as much as £500 million (three-quarters of group revenue) “may be materially misstated” and raising red flags over the “completeness and occurrence” of these funds[9]. Webull UK CEO Nick Saunders blasted the delay as “regulatory dysfunction in real-time,” arguing the 12-month mobilisation period is insufficient for Revolut to meet technological and regulatory requirements, and warned that protracted scrutiny risks driving fintech

The Bank of England and Prudential Regulation Authority (PRA) have delayed granting Revolut its full UK banking license over concerns about the fintech’s risk management controls amid rapid international expansion. Though Revolut entered the 12-month "mobilisation" phase after initial approval in July 2024, regulators want the company to enhance its risk management and simplify its complex shareholding before full authorization, which would allow Revolut to hold deposits above £50,000 and start lending in the UK to its 12 million domestic customers[1][5][10]. Revolut’s CEO emphasized working constructively with the PRA, while the Chair projected licensed operations may start during 2025, but no specific date has been set yet[

**Live Update**: Regulators continue to hold up Revolut's UK bank approval due to concerns over risk controls and governance. The Bank of England and its Prudential Regulation Authority (PRA) are scrutinizing Revolut's ability to maintain strong financial crime and operational resilience controls across multiple jurisdictions. Amidst these delays, UK regulators face criticism, with Webull UK CEO Nick Saunders labeling the situation as "regulatory dysfunction in real-time," warning that it could undermine the UK's fintech ambitions and lead to companies relocating abroad[4][5].

**UPDATE 1:** The U.K.’s Prudential Regulation Authority and Bank of England are holding up Revolut’s full U.K. banking license due to concerns about whether the fintech’s risk management controls can keep pace with its rapid global expansion—now at 65+ million customers worldwide—while it remains in the “mobilization” phase, which typically lasts up to 12 months but has already lapsed for Revolut[1][6]. Lacking full approval, Revolut cannot offer loans, mortgages, or hold significant U.K. deposits, leaving a gap for rivals like Monzo, Starling, and traditional players to deepen their own digital offerings and attract customers seeking a broader suite of banking products[1

## Live Update: UK Banking Regulators Delay Revolut’s Full License Over Risk Control Concerns The Bank of England and Prudential Regulation Authority (PRA) are withholding final approval of Revolut’s U.K. banking license, citing persistent concerns about whether the fintech giant’s risk management controls can keep pace with its rapid global expansion—Revolut currently serves over 12 million U.K. customers and more than 65 million worldwide, but regulators insist it must commit to building a risk management infrastructure “to match its international growth” before the license can be granted[1]. Adding to the pressure, Revolut’s auditor BDO recently issued a warning that as much as £500 million—three-quarters of the

Revolut’s delay in obtaining full UK banking approval due to regulatory concerns over risk controls has led to a cautious market reaction, with investors scrutinizing its growth prospects amid intensified oversight. Despite the setback, Revolut recently hit a $75 billion valuation in a secondary share sale, reflecting sustained investor confidence despite regulatory hurdles[10]. Meanwhile, established UK banks like Lloyds have seen some pressure on their shares due to legal provisions but remain fully licensed, contrasting with Revolut’s ongoing licensing challenges[11].

The UK’s Prudential Regulation Authority (PRA) has delayed Revolut’s full banking licence approval due to concerns over the fintech’s risk management controls, including financial crime measures, operational resilience, and governance amid its rapid global growth. The PRA required Revolut to produce clearer audited accounts after its auditor, BDO, raised flags that £500 million of 2021 revenue—about 75% of total income—“may be materially misstated,” leading to a statutory warning notice and extended scrutiny before further licence progress[5][6][9]. Regulators also insisted on a simplified shareholding structure to ensure governance standards before removing the current deposit and product caps during Revolut’s mobilisation phase toward full authorisation