Revolut’s UK Banking License Faces Fresh Delays Over Risk Management Concerns

U.K. fintech giant Revolut has hit a new obstacle in its long-running effort to secure a full banking license in its home market, with the Bank of England reportedly delaying approval due to ongoing concerns about the company’s risk management capabilities amid rapid international expansion.

The central bank has expressed doubts about whether Revolut can maintain robust risk management controls as it continues its aggressive global growth. Regulators are now insisting that the company strengthen its internal safeguards before a full banking license can be granted. The report noted that both U.K. and international risk frameworks are under scrutiny.

Revolut received initial approval to obtain a banking license more than a year ago, but remains in what is known as the “mobilization” phase — a transitional period that typically lasts around 12 months. During this stage, the company faces deposit restrictions while it finalizes operational readiness, and the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) assess whether it meets the standards required to function as a full bank.

Obtaining the license would mark a major milestone for Revolut, enabling it to offer loans in the U.K. and hold more than £50,000 in customer deposits. The company currently serves 12 million customers across the United Kingdom.

News of the latest delay comes as Revolut continues to expand at breakneck speed internationally. The company, which now boasts over 65 million global customers, already operates with a banking license in the European Union and has launched services in Australia, Japan, New Zealand, Singapore, Brazil, and the United States.

Just last week, Revolut launched in India and is preparing to enter Colombia in 2026, with further plans to expand into Argentina and Mexico. The fintech also intends to move into Africa, starting with South Africa, and already holds an in-principle payments license in the UAE.

Revolut’s ambitions remain vast: the company aims to reach 100 million users by mid-2027 and expand into more than 30 new markets by 2030.

Responding to reports of the delay, a Revolut spokesperson said in an emailed statement: “We are progressing through the final stages of mobilization and continue to work constructively with the PRA. Given Revolut’s global scale, this is the largest and most complex mobilization ever undertaken in the U.K. A thorough review is an expected part of the process, and getting this right is more important than rushing to meet a specific date.”

Financially, Revolut remains in strong standing. According to its 2024 annual report, the company posted a net profit of $1 billion (£790 million), while revenues surged 72% to $4 billion (£3.1 billion) year-on-year. Its Wealth division also saw a sharp rise in activity, fueled by the launch of its new crypto exchange, Revolut X, which helped drive a 298% increase in revenue — from $158 million in 2023 to $647 million in 2024.

As regulators weigh the fintech’s next move, Revolut’s path to becoming a fully licensed U.K. bank remains open but uncertain — a process now shaped as much by its global scale as by the domestic regulatory scrutiny it faces. 

By fLEXI tEAM