Revolut, the UK-based neobank that offers crypto trading as part of its financial app, may be denied its banking license by the Bank of England (BOE).
The BOE has reportedly informed the UK Treasury of its intention to reject Revolut’s application. Information about the source of this report remains unknown. However, Revolut did not comment on its ongoing license applications, as stated by a company spokesperson. Similarly, BOE declined to comment on the matter.
Revolut’s financials have come under scrutiny this year following an assessment by its auditors, BDO. BDO has raised concerns about Revolut’s 2021 revenue figures, casting doubt on their accuracy.
Especially the BDO has expressed its inability to verify the income of the last three quarters. During this period, Revolut has used approximately $765 million. Furthermore, Revolut itself has acknowledged the possibility of misinformation.
If the Bank of England (BOE) denies Revolut a banking license, Neobank will continue to provide its existing services. However, it cannot offer mortgage or loan facilities to its customers in the United Kingdom. This decision will limit Revolut’s offerings regarding financial assistance and loan options within the country.
Revolut has experienced remarkable success in the UK market since its inception eight years ago. Specifically, Revolut’s revenue statistics show that cryptocurrencies have become a significant contributor to its revenue in 2021, accounting for almost a third of its total earnings. However, recently this contribution has decreased slightly.
Earlier this month, Chief Financial Officer Mikko Salovara resigned from fintech company Revolut, citing personal reasons for his departure. His departure adds to the mounting challenges facing the company. Salovara joins Revolut in 2021, coinciding with the month the company submitted its banking license application.
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