Revolut’s bid to become a fully licenced UK bank has been held up by regulatory concerns over its global risk controls, reports say.
According to a report in the Financial Times published on Tuesday, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have flagged issues with the company’s oversight of cross-border risk, complicating its path to becoming a fully regulated UK bank.
Revolut operates in many countries around the world, exposing it to regulatory regimes and risks that UK regulators say require stronger control frameworks.
While Revolut has sought to beef up its risk and compliance operations, UK authorities remain unconvinced its controls are sufficiently robust to handle the responsibilities that come with a banking licence — including deposit protection, capital and liquidity requirements and crisis management protocols.
A full UK banking licence would allow Revolut to accept customer deposits within the UK, strengthen trust and reduce reliance on external banking partners. But missing that licence risks putting the firm at a disadvantage against incumbent players with full banking status.
The delay underscores how challenging it is for digital challengers to scale across geographies while satisfying local regulators’ demands.
Approached for comment, a Revolut spokesperson referred to an earlier statement in which the company said it continued to "work constructively" with regulators.
"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."
