The Bank of England has told the Treasury that it is planning to reject Revolut’s application for a banking licence, after a two-year campaign by Britain’s most valuable fintech company, according to The Telegraph.
The Prudential Regulation Authority (PRA), the arm of the Bank responsible for licensing, informed the Government in March that it planned to issue a statutory warning notice to Revolut within a few weeks.
It said the company’s initial application would be turned down owing to concerns over its balance sheet, after a qualified audit opinion in overdue accounts released that same month. Revolut has said auditors’ concerns were about revenues, not the balance sheet.
However, it is understood that the warning notice has not been served and there are now urgent talks taking place behind the scenes in a bid to rescue the licence application.
Revolut’s existing services will not be affected if it is refused a licence. However, the company would be unable to offer mortgages and loans to UK customers, who in 2021 accounted for more than 30pc of its revenues. Customers’ money is already protected through safeguarding rules and this will not change.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
