Revolut continues its difficult path to obtaining a banking license in the United Kingdom.
According to the British media, this company, which is a provider of digital banking services, has faced various problems and procedural delays in the implementation of efforts aimed at achieving the mentioned goal. Despite the difficulties, Revolut continues to be committed to interacting with regulators. The company also remains hopeful of obtaining a banking license.
Revolut applied for the said document in 2021. Since then, the company has faced numerous challenges in achieving the goal. The media reports that in this case, the circumstance slowing down and complicating the process is the significant customer base of the banking service provider, which in the UK is almost 8 million people. This fact was the reason for the increased attention of regulators to Revolut. The authorities strive to ensure reliability and compliance with the requirements of the company’s activities in comparison with other creditors who have recently received licenses.
Regulators also conducted a thorough analysis of Revolut’s financial statements. The company has delayed the preparation of statements for 2021 and 2022. For this reason, regulators have concerns. The company solved this problem by deciding to develop its own accounting software package instead of using a ready-made algorithm. Regulators have also expressed concern that Revolut is probably downplaying shortcomings regarding its financial statements.
In September, the company was allowed to postpone the submission of documentation on activities for the past year. That time, a brand representative said that Revolut is looking forward to the opportunity to announce the audit for 2022 and the annual report, noting that the firm’s business is growing, the range of products offered to consumers is expanding, and sales volumes and customer base are increasing.
The process of obtaining a license was also complicated by the departure of several senior managers. Regulators trust stable management teams more. To solve this problem, the Prudential Regulation Authority (PRA) has asked Revolut to expand the composition of the board of directors. The company will have to add two non-executive directors to its internal hierarchy.
The external conjuncture in this case has also become an influence factor. Regulators have become more cautious after several banks failed in the United States in the early spring of 2023. Also, the current state of affairs in the sphere of the economy provokes concern about the ability of fintech companies to raise capital if necessary.
As we have reported earlier, Revolut Launches New Solution for Businesses.