Securing a UK licence was seen as key in the fintech’s pursuit of a €41bn market valuation and to compete against more established traditional banks
Securing a UK licence was seen as key in the fintech’s pursuit of its €41bn market valuation and to compete against more established traditional banksAt Revolut ’s Canary Wharf headquarters, neon signs exhort staff to “get shit done”. Yet the start-up’s rocky journey towards becoming a full-fledged bank in its home market has been uncharacteristically slow.
Securing a UK banking licence typically takes a year, according to regulatory guidance, but Revolut’s application was stalled by a series of setbacks including the departure of senior executives, accounting problems and concerns about its ownership structure. One person who was approached to work on the licence application said they had turned down the opportunity because of worries that Storonsky’s character would negatively impact the fintech’s relationship with regulators, describing him as “temperamental and volatile” – though hyper-focused on turning out superior products.
It was part of a wider effort to shake Revolut’s reputation as a fast-moving, sometimes reckless, start-up focused on growth at all costs to show that it could become a grown-up, regulated bank with a more conservative approach to risk. She has been focused on improving the bank’s compliance culture by creating new approval processes for every feature Revolut seeks to launch, according to another person familiar with the move.
Success in obtaining the licence is expected to unlock new growth for a company that has long since dwarfed early rivals such as Monzo and Starling. It would also put Storonsky’s personal stake in the company at almost $8 billion, based an FT analysis of public documents from last August. Gilbert’s holding could be worth more than $850,000. Revolut declined to comment on the figures.
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