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Revolut Faces Setback as Bank of England Rejects Banking License Application

Revolut Faces Setback as Bank of England Rejects Banking License Application

According to reports from the Telegraph, the Bank of England is expected to reject Revolut's longstanding request for a banking license in the United Kingdom.

Revolut, a prominent player in the payments industry, has been striving to obtain a banking license in the UK for the past two years. Earlier this year, the company’s CEO expressed optimism that the license would be granted in the near future.

Nikolay Storonsky, the CEO of Revolut, recently commented that the license was delayed due to regulators’ concerns arising from the ongoing banking crises involving Silicon Valley Bank and Credit Suisse.

Storonsky’s remarks followed a period of turmoil at Revolut lasting over two months. Earlier reports had indicated that the approval of the license was imminent, only to be thwarted when BDO, the company’s auditor, expressed reservations about certain financial statements for 2021, stating that they were “materially misstated.”

BDO specifically raised concerns regarding the accuracy and occurrence of £500 million in revenue. In February, the auditors highlighted inconsistencies in Revolut’s 2021 revenue figures, which were later disputed by the company and independently verified.


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In the event that Revolut’s banking license is not approved, the company will still be able to operate in the UK; however, its profits will likely decline as it will be unable to offer mortgages and loans in the country, which are among its long-term goals.

Revolut has encountered various challenges in recent times. Just this month, the company’s CFO, Mikko Salovaara, resigned for personal reasons. Salovaara joined Revolut in January 2021, around the same time the company submitted its application for a banking license.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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