The Bank of England is planning to reject neobank Revolut’s application for a banking licence in the UK, according to a report by The Telegraph published Thursday.
Sifted understands the application is still ongoing.
Revolut applied for a licence in the UK in 2021, which would allow it to offer regulator-protected deposits and lending products like mortgages. Investors and analysts say the licence is key for the bank to compete with incumbent rivals. Currently, Revolut is regulated as an electric money (e-money) institution.
The bank — which is one of Europe’s most valuable private tech companies — has been plagued with executive turnover and questions about its most recent financial statements.
Five top employees, including the CFO, have left this year. Though Revolut did post a profit for the 2021 financial year, the accounts were delayed for months. And auditor BDO stated that 75% of Revolut's 2021 revenues “may be materially misstated” owing to issues with the company’s internal accounting systems.
Revolut was granted a licence in the European Union in 2021 and has applied for a licence in the US.
The Telegraph report says that “there are now urgent talks taking place behind the scenes in a bid to rescue the licence application”.
A spokesperson for Revolut said that the company does not comment on ongoing licence applications.
Updated on May 19 with Revolut's comment and to add that Sifted understands the licence application is still ongoing.