Regulators are holding up Revolut’s progress towards a full UK banking licence as they probe whether the fintech’s risk management can keep pace with its rapid international expansion.

The Bank of England’s prudential regulation authority (PRA), Revolut’s lead regulator, has sought assurances that the firm will strengthen controls across areas including money laundering and IT systems, reflecting concerns around cross-border payments and its growing footprint overseas. Revolut has 65 million customers across about 40 countries and is pursuing entry into 30 more by the end of the decade.

Revolut secured initial approval for a UK banking licence in July 2024 after a drawn-out process, entering a mobilisation phase that caps total deposits at £50,000 while the firm upgrades systems and governance. The PRA says mobilisation typically lasts 12 months, but the period is not fixed and can be longer for larger or more complex firms. Similar restrictions at Zopa Bank were lifted after 18 months.

Officials are closely scrutinising Revolut’s international controls before granting full UK accreditation, partly because approval could spur other jurisdictions to follow suit. The process has stretched past 14 months, and sources say the PRA is pressing Revolut to “bulk up” its risk infrastructure to match its global ambitions.

At the opening of Revolut’s new Canary Wharf headquarters last month, co-founder and chief executive officer Nik Storonsky called the UK licence the company’s “number one priority” and reflected on earlier strategy. “When we started international expansion many years ago, we tried to short-cut our banking licences and apply for lighter licences, e-money licences, FX licences, payment licences … and it was a worse product,” Storonsky said, according to the Financial Times. Revolut still expects full accreditation in the UK before the end of 2025, per its annual report.

Revolut has said it is “progressing through the final stages of mobilisation” and working “constructively with the PRA,” adding: “Given Revolut’s global scale, this is the largest and most complex mobilisation ever undertaken in the UK. A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date” . The Financial Times also reported that the PRA and the Financial Conduct Authority have raised specific concerns over cross-border payments controls.

Separately, tensions surfaced after reports that chancellor Rachel Reeves sought a three-way meeting with the PRA and Revolut, which was blocked by Bank of England governor Andrew Bailey.

While awaiting a full UK licence, Revolut has secured banking licences in the EU, via Lithuania’s central bank, and in Mexico, and has received approval to set up a bank in Colombia. The firm is also exploring a US bank acquisition to obtain a national charter, allowing lending in all 50 states.

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