8.6 C
New York
Sunday, June 16, 2024
Home Challanger banks Revolut Could Be One Step Closer to Obtaining Its UK Banking License

Revolut Could Be One Step Closer to Obtaining Its UK Banking License

Revolut, the British FinTech company, is expected to sign off on its 2021 financial accounts as part of an audit, according to a spokesperson from the company.

This could be a significant milestone for the company, as it could help clear the way for Revolut to obtain a digital banking license from regulators, the Financial Conduct Authority (FCA), and the Prudential Regulation Authority (PRA).

Revolut Expects to Confirm That It is Profitable

The filing is expected to be approved by auditor BDO, according to sources cited by the Financial Times (FT). This confirms that Revolut is profitable, a fact that the company is expected to confirm shortly.

PYMNTS reported last year that Revolut was facing pressure to improve its internal financial reporting controls, after the UK’s Financial Reporting Council found flaws in the company’s audits, which had a high risk of “misstatement.” The FT had also reported that Revolut’s payments group lost key personnel in its risk and compliance departments.

Revolut Had to Make Upgrades to Its Back Office and Controls

Sources have suggested that Revolut needed to make upgrades to “unsexy things like its back office and controls” to improve its audits and internal controls for financial reporting.

This is because the company needs to create a culture that is closer to that of a bank than a tech firm, according to the source.

Revolut Continues Its European Expansion

Last month, Revolut continued its European expansion by offering Irish customers local bank accounts. By giving customers Irish International Bank Account Numbers (IBANs), Revolut’s 2 million-plus Irish customers can stop using IBANs from Lithuania.

This is because some customers in Ireland have had difficulties with employers or service providers refusing to accept an IBAN from another country, an example of what PYMNTS has called “IBAN discrimination.”

Revolut’s expected confirmation of its profitability and the approval of its filing by auditor BDO could help clear the way for the company to obtain a digital banking license from regulators the FCA and the PRA.

The company has faced pressure to improve its internal financial reporting controls and audits, and sources have suggested that upgrades were necessary to make the company’s culture more like that of a bank than a tech firm.

Despite these challenges, Revolut continues to expand its services across Europe, with the recent offering of local bank accounts to Irish customers.

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.