{"id":18786,"date":"2025-07-30T09:48:01","date_gmt":"2025-07-30T09:48:01","guid":{"rendered":"https:\/\/finderica.com\/?p=18786"},"modified":"2025-07-30T09:48:01","modified_gmt":"2025-07-30T09:48:01","slug":"why-uk-bank-launch-is-taking-so-long","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=18786","title":{"rendered":"Why UK bank launch is taking so long"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108021392\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Revolut cards are seen in this illustration photo taken in Krakow, Poland on March 29, 2024.<\/p>\n<p>Jakub Porzycki | Nurphoto | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>LONDON \u2014 A year on from securing its initial U.K. bank license, Revolut is still awaiting full authorization from regulators.<\/p>\n<p>The fintech giant was granted a banking license with restrictions in July 2024\u00a0from the U.K.&#8217;s Prudential Regulation Authority (PRA), bringing an end to a years-long application process that began back in 2021. The PRA is a unit of the Bank of England.<\/p>\n<p>This key victory moved Revolut into what&#8217;s known as the &#8220;mobilization&#8221; phase of a company&#8217;s journey toward becoming a full-fledged bank.<\/p>\n<p>During this period, firms are limited to holding only \u00a350,000 of total customer deposits \u2014 well below the hundreds of billions of pounds customers deposit with major high street lenders such as <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">Barclays<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-3\">HSBC<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-4\">Santander<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>.<\/p>\n<p>Revolut customers in the U.K. are also still served by the company&#8217;s e-money unit, instead of its banking entity. This means they are not directly insured by the\u00a0Financial Services Compensation Scheme, which protects customers up to \u00a385,000 if a firm fails.<\/p>\n<p>Roadblocks and the sheer size of Revolut are among the many reasons why the firm&#8217;s bank authorization process is taking longer than expected, analysts told CNBC.<\/p>\n<p>Revolut is currently still awaiting its consumer credit license, which would enable it to offer credit cards and other services in the U.K.<\/p>\n<\/div>\n<div data-test=\"WildCardEmbed\">\n<div class=\"WildcardEmbed-wrapper\">\n<style><![CDATA[\n\tdiv \n\t\tbox-sizing: border-box;\n\t\n\t.noselect \n\t  -webkit-touch-callout: none; \/* iOS Safari *\/\n\t\t-webkit-user-select: none; \/* Safari *\/\n\t\t -khtml-user-select: none; \/* Konqueror HTML *\/\n\t\t   -moz-user-select: none; \/* Old versions of Firefox *\/\n\t\t\t-ms-user-select: none; \/* Internet Explorer\/Edge *\/\n\t\t\t\tuser-select: none; \/* Non-prefixed version, currently\n\t\t\t\t\t\t\t\t\t  supported by Chrome, Edge, Opera and Firefox *\/\n\t\n\t\n\t.DO-widget-wrapper \n\t\twidth: 100%; \n\t\tmax-width: 620px;\n\t\tbackground-color: #fff;\n\t\n\t\n\t.DO-logo-row \n\t\tmargin-bottom: 10px;\n\t\t\n\t\n\t\n\t.DO-body \n\t\tborder-top: 2px #289dcf solid;\n\t\tborder-bottom: 2px #289dcf solid;\n\t\tpadding: 12px 0 12px 0;\n\t\tmargin-bottom: 20px;\n\t\t\n\t\n\t\n\t.DO-bodycopy .DO-button \n\t\tfont-family: Proxima Nova,Helvetica,Arial,sans-serif;\n\t\n\t\n\t.DO-bodycopy color: #424858; font-size: 18px; line-height: 31px; margin-bottom: 12px;\n\t\n\t.DO-button \n\t\tcolor: #fff; \n\t\tfont-size: 16px;\n\t\tfont-weight: 600;\n\t\twidth: 120px;\t\n\t\theight: 30px;\n\t\tbackground-color: #0071bc;\n\t\tborder-radius: 6px;\n\t\ttext-transform: uppercase;\n\t\tpadding: 4px;\n\t\ttext-align: center;\t\n\t\tcursor: pointer;\n\t\tmargin-bottom: 4px;\n\t\ttext-decoration: none !important;\n\t\n\t\n\t.DO-button:hover \n\t\tbackground-color: #0a94e0;\n\t\ttext-decoration: none !important;\n\t\n\t\n\t@media \n\t\t\t\n\n]]><\/style>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Meanwhile, the <a href=\"https:\/\/www.ft.com\/content\/6677d91a-ee1f-483b-b09d-5aada80f43cc\" target=\"_blank\" rel=\"noopener\">Financial Times reported <\/a>Tuesday that a meeting arranged by British Finance Minister Rachel Reeves with Revolut and the PRA was cancelled after an intervention from Bank of England Governor Andrew Bailey.<\/p>\n<p>CNBC was unable to independently verify the report. The BOE declined to comment and the Treasury did not immediately respond to CNBC&#8217;s request for comment.<\/p>\n<p>A spokeswoman for Revolut said that while the firm was unable to comment on specifics, the company remains on track to launch a fully regulated U.K. bank this year.<\/p>\n<p>&#8220;We are progressing through the final stages of mobilisation and continue to work constructively with the PRA,&#8221; she told CNBC via email.<\/p>\n<p>&#8220;Given Revolut&#8217;s global scale, this is the largest and most complex mobilisation ever undertaken in the UK. A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date.&#8221;<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"><\/a>What&#8217;s the hold up?<\/h2>\n<div class=\"group\">\n<p>Barney Hussey-Yeo, CEO of fintech firm Cleo, said that &#8220;anti-growth regulatory posture&#8221; from the U.K. was likely a contributing factor in the delays to Revolut exiting its mobilization phase.<\/p>\n<\/div>\n<div class=\"group\">\n<p>&#8220;Revolut is already a regulated bank in over 30 countries, including some of the toughest jurisdictions in the world,&#8221; he told CNBC, noting the company is worth more than some major U.K banks on a <a href=\"https:\/\/www.ft.com\/content\/f4de3f2e-2476-4048-a035-f1f78a59922e\" target=\"_blank\" rel=\"noopener\">rumored $65 billion valuation<\/a>.<\/p>\n<p>&#8220;If that&#8217;s not enough scale or rigour for the PRA, it raises serious questions about the UK&#8217;s regulatory expectations \u2014 because they now look excessive,&#8221; Hussey-Yeo added.<\/p>\n<p>Regulators are nervous about getting it wrong due to the lingering &#8220;scar tissue&#8221; of the 2008 financial crisis, said Simon Taylor, head of strategy at fraud prevention platform Sardine AI.<\/p>\n<p>&#8220;The U.K. has historically had one of the single most risk-averse regulatory postures in the world\u00a0when it comes to capital requirements, especially,&#8221; he told CNBC.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"><\/a>A huge undertaking<\/h2>\n<div class=\"group\">\n<p>Another factor at play is Revolut&#8217;s size. No other firm has entered the mobilization phase of bank authorization with more than 500,000 customers. Revolut serves over 10 million customers in the U.K.<\/p>\n<p>Once it exits the mobilization phase, Revolut would need to gradually start migrating customers to its U.K. banking entity \u2014 a significant undertaking.<\/p>\n<\/div>\n<div class=\"group\">\n<p>This, coupled with Revolut&#8217;s already lengthy history in the U.K. market and <a href=\"https:\/\/www.bbc.co.uk\/news\/articles\/cj6epzxdd77o\" target=\"_blank\" rel=\"noopener\">complaints over fraud<\/a>, makes it a &#8220;complex player to authorize,&#8221; according to Taylor.<\/p>\n<p>&#8220;A lot of the larger banks historically complained about Revolut being a major source of their fraud risk,&#8221; he told CNBC. &#8220;My guess is that these complaints and issues have shown up in the BoE&#8217;s regulatory reports, and they have material, well grounded concerns.&#8221;<\/p>\n<p>Still, Taylor conceded that Revolut has &#8220;some of the most sophisticated technology to detect and prevent these issues, and has been at the front line of dealing with the scams issue.&#8221;<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline2\"><\/a>&#8216;Symbolic win&#8217;<\/h2>\n<div class=\"group\">\n<p>Ensuring Revolut obtains full authorization to operate a bank is important for the U.K. government \u2014 particularly as it faces criticisms from the tech industry that changes to the non-domicile tax status, along with increased taxes on capital gains, have created a hostile environment for entrepreneurs.<\/p>\n<p>&#8220;Every element of wealth capture for the U.K. \u2014 jobs, taxes, equity gains \u2014 has been eroded,&#8221; Cleo&#8217;s Hussey-Yeo said, adding that there was a heightened risk that\u00a0richly valued fintechs like Revolut\u00a0could move\u00a0their\u00a0global headquarters outside of the U.K. if such measures continue.<\/p>\n<p>Sardine.ai&#8217;s Taylor said Revolut receiving full bank authorization &#8220;would be a massive symbolic win&#8221; for the government.<\/p>\n<p>&#8220;The Chancellor [of the Exchequer] cannot afford to lose Revolut to another jurisdiction \u2014 but Revolut looks at a global market and sees lots of willing suitors for its business, and very little willingness from the U.K.,&#8221; he told CNBC.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108137460\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108137460\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000374280\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/07\/30\/revolut-uk-bank-delays.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Revolut cards are seen in this illustration photo taken in Krakow, Poland on March 29, 2024. Jakub Porzycki | Nurphoto | Getty Images LONDON \u2014 A year on from securing its initial U.K. bank license, Revolut is still awaiting full authorization from regulators. The fintech giant was granted a banking license with restrictions in July<\/p>\n","protected":false},"author":1,"featured_media":18787,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[136,1386,1707],"class_list":{"0":"post-18786","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-bank","9":"tag-launch","10":"tag-long"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/18786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18786"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/18786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/18787"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}