Revolut still waiting for UK banking licence almost a year after claiming approval was ‘imminent’

Revolut is still waiting for a UK banking license almost a year after claiming approval was “imminent”.

The financial app said on March 1 last year that regulators would give it the green light “at any time.”

But 362 days later the wait continues, causing embarrassment to founder and CEO Nik Storonsky (right).

Revolut applied for a license from the Bank of England in 2021 to allow it to expand its services in Britain to accept deposits, provide loans and offer credit cards.

At the time, it was considered the UK’s most valuable fintech, worth an estimated £26 billion.

But three years later, it is still grappling with demands from the central bank’s Prudential Regulatory Authority (PRA).

Revolut has been uncommunicative about the license in recent months, leading to speculation that it may have paused or withdrawn its application. Revolut and the PRA declined to comment.

The continued delays prompted an outburst from Storonsky last year when he called Britain an undesirable place to do business. Analysts dismissed the spicy comments as a “tantrum” and “sour grapes” as regulators refused to approve approval.

However, the PRA has authorized 36 new British start-up banks since 2013, including Monzo and Starling Bank.

The delay is still a big blow for Revolut. The company, whose chairman is City grandee Martin Gilbert, saw its valuation fall to £14bn last year following a write-down by investors.

Revolut has also failed to publish its accounts on time for 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 could not independently verify three quarters of its £636m revenue.

He warned that some of the information could be “materially erroneous.” In December, Revolut published its 2022 results three months late, posting a loss of £25m, down from a £40m profit the previous year.