Revolut’s long wait for a full UK banking licence continues, as regulators remain uneasy about how well the company’s risk controls can keep up with its rapid global growth.

Officials at the Bank of England have reportedly asked the fintech giant — which now serves around 65 million customers across 40 countries — to strengthen its risk management systems before receiving full approval.

Revolut, often described as Europe’s most valuable start-up, secured conditional approval for a UK banking licence in July 2024, after three years of back-and-forth with regulators. But for now, it remains in what’s called a “mobilisation phase,” which limits its operations.

Once it obtains a full licence, Revolut will be able to enter the UK’s lending market — a key milestone that would allow it to put its large pool of customer deposits to work.

The Prudential Regulation Authority (PRA), the part of the Bank of England that oversees Revolut, is reviewing how the company handles risks such as money laundering, IT resilience, and capital adequacy — not only in the UK but globally. This deep scrutiny has stretched the process beyond the typical 12-month timeframe.

During this mobilisation period, Revolut’s banking arm can hold only £50,000 in total deposits. Regulators are proceeding cautiously, aware that giving Revolut a full licence in the UK could encourage other countries to follow suit.

Revolut has big ambitions. At the opening of its new headquarters in Canary Wharf last month, co-founder and CEO Nik Storonsky said gaining a full UK banking licence remains the company’s “number one priority.” He admitted that in its earlier years, Revolut focused too heavily on global expansion rather than securing proper licences.

“When we started expanding internationally, we went for lighter licences — e-money, FX, payments — and that led to a weaker product,” Storonsky said.

While the company is still waiting for the UK green light, it has already obtained banking licences in Lithuania (covering the EU) and Mexico. Regulators in Colombia also recently allowed Revolut to establish a local bank, though it still needs additional approvals before it can start lending there.

In the U.S., Revolut is exploring the purchase of an existing bank to gain a national charter, which would let it lend in all 50 states.

Revolut has declined to comment further but referred back to its July statement, saying it’s “progressing through the final stages of mobilisation” and working closely with regulators. The company emphasized that, given its global reach, this is “the largest and most complex mobilisation ever undertaken in the UK” — and that taking the time to get it right matters more than speed.

Revolut said in its 2024 annual report that it expects to secure its full UK banking licence before the end of 2025. The PRA did not comment on the ongoing process. Photo by acediscovery, Wikimedia commons.