Rumours have emerged that Revolut's application for a banking licence in the UK is set to be rejected.

The FinTech lodged its application to the FCA more than two years ago having already received an EU banking licence through Lithuania in 2018 and a full banking licence from the European Central Bank in 2021.

According to The Telegraph, the Prudential Regulation Authority – the Bank of England division which oversees the granting of banking licences – told the Treasury in March that Revolut’s application was set to be turned down due to concerns over its balance sheet.

Earlier this year, Revolut was hit with the revelation from its accountant BDO that £477 million of its reported £636 million 2021 revenues may have been “materially misstated”.

The report cites Revolut’s accountant who said that the company’s internal IT systems could not provide “appropriate assurance” relating to revenue generation from segments of the business including crypto trading.

The potential discrepancy prompted Schroders to cut its valuation of Revolut by 46 per cent.

Since then, Revolut chief financial officer Mikko Salovaara stepped down from the role citing “personal reasons”.

More recently, Revolut chief executive Nik Storonsky blamed the current banking crisis for the licence delay, which began with the collapse of Silicon Valley Bank due to a bank run, and said that the UK was an “undesirable place to do business”.

Some observers have since warned that ‘throwing a tantrum’ was unlikely to help matters.

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