Neobank Revolut, the world’s third-largest fintech, is facing reluctance from UK regulators over its UK banking license.
Revolut pending in its banking license
In a survey published in early May, Bloomberg highlights the setbacks encountered by Revolut in the acquisition of a banking license in Great Britain. The founder of the company estimated at 33 billion dollars, Nikolay Storonsky, hoped to obtain this certificate in early 2022. He had made a first request a year earlier.
Silicon Valley: the party is over
If UK regulators are reluctant to grant Storonsky’s request, it is to ensure that Revolut has the necessary compliance and risk management capabilities. They want to be sure that Revolut won’t repeat the mistakes of some of its predecessors. It is in particular the company’s cryptocurrency exchange services that are monitored by the financial police.
Indeed, since the end of March, the Financial Conduct Authority has required companies using this type of service to be registered. These obligations are part of the will of the British authorities to fight against money laundering.
” We take our regulatory and compliance obligations very seriously “, reassures a spokesperson for Revolut. ” We have constructive and productive relationships with 22 regulators around the world and our relationships with those in the UK are among the oldest.. »
Obtaining this license is essential for Revolut in order to establish protected current accounts in the United Kingdom, with overdrafts and loans. ” The standards are very high to obtain a banking license in the UK. You have to be very thorough in your know-your-customer procedures “says Mark Hipperson, co-founder of Starling Bank, to Bloomberg.
Thanks to a Lithuanian banking license serving as a passport within the European Union, the neobank has developed in 10 Member States since January.
Revolut, the next great app?
Founded in 2015, Revolut aims to become the next “super app”, like WeChat Pay. The neobank already offers payment services, cryptocurrency transactions, in-store purchases and even pet insurance.
Today, Revolut has over 18 million customers. The goal is to create a platform that allows their customers to manage all their financial needs from their smartphones. ” [avec la super application] We are going back to the days when customers had their current accounts, their loans, their insurance, in the same place. “says Mark Hipperson.
Slowly but surely, Nikolay Storonsky will have to be patient and show his credentials to obtain his banking license. The United Kingdom and the United States are the hearts of global finance. If Revolut hopes to continue to expand its influence in this area, it must succeed in convincing their regulators that it poses no risk.