Revolut, the UK-based neobank that offers crypto trading as part of its financial app, might have its banking license rejected by the Bank of England (BOE).
According to reports, the BOE has informed the UK Treasury of its intention to reject Revolut’s application. The information regarding the source of this report remains unknown. Revolut, however, chose not to provide any comments regarding their ongoing licensing applications, as stated by a company spokesperson. Similarly, the BOE declined to comment on the matter.
Revolut’s financial situation has faced scrutiny this year following an assessment by its auditors, BDO. BDO has raised concerns regarding Revolut’s 2021 revenue figures, casting doubt on their accuracy.
Notably, BDO has stated its inability to verify the revenue for the past three quarters. During this period, Revolut has utilized approximately $765 million. Furthermore, Revolut itself has acknowledged the possibility of erroneous information.
Should the Bank of England (BOE) deny Revolut a banking license, the neobank will persist in providing its existing services. However, it cannot extend mortgage or loan facilities to its clientele in the United Kingdom. This decision would limit Revolut’s offerings regarding financial assistance and borrowing options within the country.
Revolut has experienced remarkable success in the UK market since its inception eight years ago. Notably, the revenue statistics of Revolut indicate that crypto has emerged as a significant contributor to its income in 2021, constituting nearly one-third of its total earnings. However, there has been a slight decline in this contribution recently.
Earlier this month, CFO Mikko Salovaara resigned from the financial technology company Revolut, citing personal reasons for his departure. His exit further compounds the mounting challenges confronting the company. Salovaara joined Revolut in 2021, coinciding with the month when the company submitted its application for a banking license.
