The Bank of England is reportedly on the brink of dismissing Revolut‘s persistent bid for a UK banking licence, a pivotal step towards progress for the FinTech juggernaut.
Revolut set forth its application for this licence in 2021, a move that would empower the bank to provide regulator-protected deposits and lending products such as mortgages.
Such a licence is considered pivotal for Revolut to effectively rival established banks. At present, Revolut operates under the regulation of an electric money institution.
Despite being among Europe’s top privately held tech companies, Revolut has struggled with high-ranking personnel changes and concerns surrounding its latest financial reports. Within the past year, five senior employees, inclusive of the CFO, have parted ways with the company.
Revolut did record a profit for the fiscal year 2021, however, there were considerable delays in releasing the accounts. Moreover, the auditing firm BDO raised alarm bells that as much as 75% of Revolut’s 2021 revenues might be significantly incorrect due to problems within the company’s internal accounting processes.
Revolut secured a licence in the European Union in 2021, and is also seeking a licence in the US. According to The Telegraph, frantic discussions are currently being held in an effort to salvage the licence application. In response, a Revolut spokesperson declined to comment on ongoing licence applications.
In other news, Revolut is making strides in Australia. The FinTech behemoth recently introduced multi-currency business accounts in the country and expressed its desire to acquire an Australian banking licence.
The innovative business account permits firms to exchange up to A$75,000 each month. Revolut Business’ head, James Gibson, conveyed to The Australian that Australian SMEs had been somewhat neglected when it came to FX and global opportunities.
Revolut’s CEO, Matt Baxby, shared: “A bank licence is still very much part of our plans. To be held to that regulatory standard would give our consumers confidence for the long haul, and would enable products that are in demand from our customers. We’re working our way through that, and it’s a key part of our plans overall.”
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