Fintech & Ecommerce

Revolut CEO Warns About Risk for London Status as FinTech Hub

Revolut’s new CEO in the United Kingdom is committed to being sure that London does not lose its status as a fintech technology hub in the future.

Revolut CEO Warns About Risk for London Status as FinTech Hub

Francesca Carlesi, UK CEO of the mentioned company, on Wednesday, March 6, during a conversation with media representatives, said that the specified city faced the risk of losing the so-called race for startups to New York and Paris. This week, she joined the Innovate Finance Unicorns Council, which brings together fintech firms in the United Kingdom to consolidate efforts to promote policy strategies that help create a favorable environment for early-stage companies.

Francesca Carlesi, during a conversation with media representatives, noted that London was the world leader in launching digital banks after the financial crisis, but over the past two or three years the corresponding trend has changed. At the same time, she suggested that the capital of the United Kingdom is still in the process of preparing for a possible initial public offering (IPO) of Revolut.
Separately, Francesca Carlesi stated that the UK is the home of the brand and the base of the company’s investors. She noted that it is always better for firms to list where their largest market is.

Francesca Carlesi stated that currently moving towards publicity is not her goal. She sees her mission as helping Revolut solve problems related to accounts, control management, and culture, as the company approaches the third year of the struggle to obtain a banking license in the United Kingdom. Francesca Carlesi joined the firm late last year from Molo, a digital mortgage lender she started. She has also held senior positions at Deutsche Bank, Barclays, McKinsey & Co., and Bridgepoint Capital.

UK Revolut CEO is focused on transforming the company from a disrupter to a player who is trusted. As part of the implementation of the relevant intentions, obtaining a banking license, simplifying the share structure, and the problems associated with the fact that last year the auditor was unable to verify most of the brand’s revenues for 2021 are of particular importance.

Francesca Carlesi believes that Revolut can potentially become the only European fintech company that will compete with the American giants of the industry. According to her, none of the major banks has been able to implement the concept of a global platform that provides consumers with specific services in each country.

Revolut released its delayed reports for 2022 in December. The company’s revenue exceeded the $1 billion mark. The corresponding figure is expected to reach $2 billion in 2023.

The company will have to appoint a permanent CFO after the previous one resigned last year.

Francesca Carlesi says that Revolut’s high growth rates are under control and, if necessary, measures can be taken to slow down this process. The company’s customer base increases by about 1 million users every month. She also drew attention to the fact that the firm uses artificial intelligence and machine learning to combat fraud and provide appropriate assistance to other industry players.

Last year, London faced accusations of creating barriers to the activities and development of fintech companies. Proponents of this point of view regarding the actions of the United Kingdom in the context of legal interaction between the state and firms from the mentioned area argue that the corresponding problem worsened after the country’s withdrawal from the European Union. Amid concerns over Lond’s policies, a FinTech Growth Fund has been set up, planning to invest between $12.7 million and $127 million in several companies, including consumer-oriented banks, payment technology groups, financial infrastructure providers, and regulatory technology brands.

Also, a kind of trend of combining fintech firms and banks is currently being recorded. In this case, it means cooperation, not merger. Banks have customer account databases that have been formed over decades, and regulatory structures. At the same time, fintech companies can offer financial institutions technology, analytics, and advanced user experience. It is worth noting that the regulatory landscape is not a stable environment. The current trends indicate that in the short term, confidence can only be in the tightening of regulation by the authorities.

As we have reported earlier, Revolut Launches Phone Plans for Travelers.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.