Still waiting: Revolut chief executive Nik Storonsky
Revolut is still waiting for a UK banking licence almost a year after claiming approval was ‘imminent’.
The financial app said on March 1 last year that it would be given the green light by regulators ‘any day now’.
But 362 days later the wait continues – causing embarrassment for founder and chief executive Nik Storonsky (right).
Revolut applied for a licence from the Bank of England in 2021 to allow it to expand services in Britain into taking deposits, making loans and offering credit cards.
At the time it was credited as the UK’s most valuable fintech, worth an estimated £26billion.
But three years on it is still wading through demands from the central bank’s Prudential Regulatory Authority (PRA).
Revolut has remained unforthcoming about the licence in recent months, leading to speculation that it could have paused or pulled its application. Revolut and the PRA declined to comment.
The ongoing delays sparked an outburst from Storonsky last year when he branded Britain as an undesirable place to do business. Analysts dismissed the spiky comments as a ‘tantrum’ and ‘sour grapes’ as regulators refused to sign off approval.
Yet 36 new UK ‘start-up’ banks have been authorised by the PRA since 2013 – including Monzo and Starling Bank.
The delay continues to be a major blow for Revolut. The company – whose chairman is City grandee Martin Gilbert – saw its valuation plunge last year to £14bn following an investor writedown.
Revolut has also failed to publish its accounts on time two years in a row. And when 2021’s were finally published last March, they attracted intense scrutiny after Revolut’s auditor BDO said it was not able to independently verify three-quarters of its £636m revenue.
It warned that some information may be ‘materially mis-stated’.In December, Revolut published its 2022 results three months late, posting losses of £25m – depreciating from a £40m profit the year before.
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