Regulatory hurdles delay Revolut’s UK banking licence-report

Core Insights - Revolut is experiencing delays in obtaining a complete UK banking licence due to regulatory concerns regarding its risk management capabilities amid global expansion [1][2][3] - The company is currently in a "mobilisation phase" after receiving a conditional UK banking licence in July 2024, with the Prudential Regulation Authority (PRA) assessing its risk management processes [2][5] - The PRA's scrutiny is a significant factor in the extended timeline for Revolut to secure a full banking licence, which would allow it to offer lending services in the UK [3][4] Regulatory Considerations - The PRA is evaluating the international implications of granting Revolut a full UK banking licence, as it may affect regulatory decisions in other countries [4] - The mobilisation phase typically lasts about a year, but for Revolut, it has already exceeded 14 months, indicating the complexity of its situation [5] Strategic Developments - Despite the delays in the UK, Revolut has successfully obtained banking licences in the European Union and Mexico, and is awaiting further authorisations to operate in Colombia [6] - The company is also exploring opportunities in the US market, including the potential acquisition of a bank to secure a national charter for lending [6] Company Priorities - The co-founder of Revolut, Nik Storonsky, emphasized that securing the UK banking licence is the company's "number one priority" and acknowledged past mistakes in prioritizing growth over proper licensing [5]