Revolut’s UK banking license may be delayed due to risk management concerns

Core Viewpoint - U.K. fintech Revolut is facing delays in obtaining a full banking license due to concerns from the Bank of England regarding its risk management capabilities amid rapid international expansion [1][2]. Group 1: Banking License Status - Revolut's full banking license application is on hold as the Bank of England requires the company to enhance its risk management systems before approval [2]. - The company received initial approval for a banking license over a year ago but is still in the "mobilization" stage, which typically lasts 12 months and includes deposit restrictions [3]. - A full banking license would enable Revolut to lend in the U.K. and hold over £50,000 in customer deposits, with the company currently serving 12 million customers in the U.K. [4]. Group 2: International Expansion - Revolut has over 65 million customers globally and is aggressively expanding beyond the U.K., having already secured a banking license in the European Union and operating in multiple countries including Australia, Japan, and the U.S. [5]. - The company has launched operations in India and plans to enter Colombia in 2026, with ambitions to expand into Argentina, Mexico, and Africa [5]. - Revolut aims to reach 100 million customers by mid-2027 and enter over 30 new markets by 2030 [6]. Group 3: Financial Performance - In its last annual report, Revolut reported a net profit of $1 billion (£790 million) for 2024, with revenues increasing by 72% to $4 billion (£3.1 billion) [7]. - The company launched a crypto exchange, Revolut X, which saw revenue rise by 298% to $647 million in 2024 from $158 million in 2023 [7].