The neobank Revolut, the world’s third-largest fintech, faces reluctance from UK regulators for its banking license in United Kingdom.
Revolut in awaiting banking license
In a survey published in early May, Bloomberg highlights Revolut’s setbacks in acquiring a banking license in Britain. The founder of the company estimated at 33 billion Nikolay Storonsky, was hoping to get that certification in early 2022. He had first applied a year earlier.
Silicon Valley: the party is over
The reason UK regulators are reluctant to grant Storonsky’s request is to ensure that Revolut has the necessary compliance and risk management capabilities. They want to be sure that Revolut doesn’t repeat the mistakes of some of its predecessors. In particular, it is the company’s cryptocurrency exchange services that are being monitored by financial regulators.
Indeed, since the end of March, the Financial Conduct Authority requires companies using such services to be registered. These obligations are part of the British authorities’ desire to fight against money laundering.
” We take our regulatory and compliance obligations very seriously “, reassures a Revolut spokesperson. ” We have constructive and productive relationships with 22 regulators around the world and our relationship with those in the UK is among the longest standing. ”
Obtaining this license is essential for Revolut to establish protected current accounts with overdrafts and loans in the UK. ” The standards are very high to get a banking license in the UK. You have to be very thorough in your know-your-customer procedures “, explains Mark Hipperson, co-founder of Starling Bank, to Bloomberg.
With a Lithuanian banking license serving as its passport within the European Union, the neobank has expanded into 10 member states since January.
Revolut, the next super app?
Founded in 2015, Revolut has ambitions to become the next “super app,” much like WeChat Pay. The neobank already offers payment services, cryptocurrency transactions, in-store shopping 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’re going back to the days when customers had their checking accounts, their loans, their insurance, all in one place “, says Mark Hipperson.
Slowly but surely, Nikolay Storonsky will have to be patient and show his credentials to get 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 represents no risk.
.
