The Revolut UK banking licence issue has sparked new tensions between the Treasury and the Bank of England. Governor Andrew Bailey recently blocked a meeting between Revolut, Treasury officials, and regulators, citing concerns over regulatory independence.
This proposed meeting aimed to accelerate Revolut’s bid for a full UK banking licence. However, Bailey believed it risked compromising the independence of the Bank’s regulatory arm, the Prudential Regulation Authority (PRA).
According to reports, the cancelled meeting was part of the government’s wider push to keep Revolut listed in London. Revolut, valued at $45 billion, has hinted it might prefer New York for its stock market debut.
That possibility alarms UK ministers, especially as more firms bypass the London Stock Exchange. Losing Europe’s most valuable fintech would be a major blow to the City.
Chancellor Rachel Reeves has strongly advocated for easing regulatory pressure on financial firms. During her Mansion House speech, she described current regulation as “a boot on the neck” of businesses.
Nonetheless, the Bank remains firm in preserving its decision-making independence. A Treasury spokesperson stressed that both parties maintain a productive working relationship. The Bank of England declined to comment directly.
Revolut received a limited UK licence last year after a long three-year process. During that time, the firm addressed past accounting problems, EU rule breaches, and concerns about its corporate culture.
Even so, Revolut still operates under significant restrictions. It cannot offer loans and can only hold up to £50,000 per customer in deposits. Regulators require stronger proof of governance, IT readiness, and staffing before granting full approval.
Clearly, securing the Revolut UK banking licence remains vital to the firm’s expansion. A full licence would allow Revolut to offer mortgages and own-branded loans in the UK. It would also boost its chances of gaining banking licences in other markets, including the United States.
In fact, Revolut is now considering buying a U.S. bank to fast-track its American licence. Without UK progress, international expansion could accelerate elsewhere.
Despite these hurdles, Revolut continues to grow. It now employs over 10,000 people and offers more than 50 services across 36 countries. These include crypto trading, wage advances, e-sims, and rental payments.
The firm’s 2024 annual report revealed a 150% jump in profit, reaching £1 billion. Revenue growth came from crypto, wealth products, and subscriptions.
As the Revolut UK banking licence debate intensifies, the outcome could reshape the fintech’s future—and London’s global financial role.
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