The Revolut Banking License Saga: Why the UK’s Most Valuable Fintech is Still in "Mobilisation”

For Nik Storonsky, the CEO of Revolut, the view from the company’s Canary Wharf headquarters in London should feel like a victory lap. Revolut recently secured a valuation of $45 billion following a secondary share sale, solidifying its position as Europe’s most valuable private tech company. Yet, for nearly four years, one critical achievement remained out of reach: a full UK banking license.

If you are a Revolut user or a fintech investor, you’ve likely asked the same question: Why is it taking so long? While the company finally received a license with restrictions in July 2024—a phase known as "mobilisation"—the journey to becoming a fully-fledged UK bank is far from over.

Understanding this delay is essential for anyone tracking the intersection of high-growth tech and rigorous financial regulation. This isn't just a story about a startup; it’s a masterclass in the friction between "move fast and break things" and the "safety first" mandate of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

The Breakthrough: What "Mobilisation" Actually Means

On July 25, 2024, Revolut officially announced it had received its UK banking license. However, the fine print revealed that the company had entered the "mobilisation" stage.

In the world of British banking, mobilisation is essentially a "learner's permit." It allows a new bank to operate with limited scale while it builds out its infrastructure, hires key personnel, and proves to regulators that its internal systems can handle the weight of a full-scale banking operation.

Key Restrictions During Mobilisation:

• Deposit Limits: Revolut cannot yet hold unlimited customer deposits in the same way Barclays or HSBC do.
• Limited Services: The company is currently restricted in its ability to launch complex lending products like mortgages or high-limit credit cards.
• Regulatory Watch: Every move is monitored to ensure the company’s "back-office" functions—compliance, risk management, and auditing—match the scale of its "front-office" marketing.

According to analysis from Sifted, this stage usually lasts around 12 months. For Revolut, this period is a trial by fire to prove they have matured beyond their "scrappy startup" roots.

The Roadblocks: Why the Three-Year Wait?

Revolut first applied for its license in January 2021. Most banks receive a decision within a year. Revolut waited over three. The delay was caused by a "perfect storm" of internal governance issues and external regulatory caution.

1. The Auditing Headache (BDO and the £477m Question)

One of the most significant hurdles involved Revolut’s 2022 financial accounts. Its auditor, BDO, issued a qualified opinion, stating it could not fully verify £477 million ($600 million) of revenue due to the "configuration of internal IT systems."

While BDO did not suggest there was fraud, the inability to verify such a massive chunk of revenue was a red flag for the PRA. Regulators require absolute transparency in how money flows through a bank. Revolut had to overhaul its accounting tech and internal controls to satisfy these concerns.

2. The SoftBank Share Structure Drama

Regulators generally prefer "clean" cap tables. Revolut’s share structure was anything but. SoftBank, one of Revolut’s major investors, held a class of "alphabet shares" that granted them special veto rights and outsized influence.

The PRA reportedly insisted that these shares be collapsed into a single class of common stock to simplify governance. Negotiations between Revolut and SoftBank dragged on for months, creating a stalemate that stalled the licensing process throughout late 2023.

3. High Executive Turnover

Trustworthiness—the "T" in E-E-A-T—is built on stable leadership. Revolut has faced criticism for a "hard-driving" corporate culture that led to high turnover in key compliance and risk roles. When regulators see a revolving door of Chief Risk Officers or Compliance Heads, they worry about the "institutional memory" and the stability of the bank’s safety nets.

Data Integration: Revolut’s Growth vs. Regulatory Reality

Despite the licensing hurdles, Revolut’s financial performance has been staggering. To understand the scale, look at the figures reported in their recent annual filings:

• 2023 Revenue: £1.8 billion ($2.2 billion), a nearly 95% increase from the previous year.
• Pre-tax Profits: £438 million, proving that the company is no longer a "cash-burning" startup but a profitable enterprise.
• Global User Base: Over 45 million customers worldwide, with nearly 10 million in the UK alone.

These numbers highlight the paradox: Revolut is already operating at the scale of a major bank, yet in its home market, it still operates as an Electronic Money Institution (EMI).

What the Full License Unlocks for Customers

If you are a Revolut user in the UK, your money is currently "safeguarded" but not insured by the Financial Services Compensation Scheme (FSCS). Once the restrictions are lifted, the experience changes fundamentally:

1. FSCS Protection: Your deposits (up to £85,000) will be legally protected by the UK government, matching the security of a high-street bank.
2. Lending Power: Revolut will be able to use its own balance sheet to offer competitive mortgages, personal loans, and credit cards, moving away from its reliance on third-party lending partners.
3. Interest-Bearing Accounts: The company will have more flexibility in offering high-yield savings products directly to consumers.

Expert Perspective: The "New Standard" for Fintech Regulation

The Bottom Line: Revolut’s delay isn't just about Revolut; it’s about a fundamental shift in how global regulators view "Big Tech" in finance.

Following the collapse of Silicon Valley Bank (SVB) and the scandals surrounding companies like Wirecard, the PRA and FCA have adopted a "Zero-Failure" mentality for systemically important institutions. Revolut, with 10 million UK users, is now "too big to fail" in the eyes of the government.

The three-year delay was effectively a forced "maturation period." Regulators didn't want to grant a license to the Revolut of 2021—a company obsessed with growth at all costs. They waited for the Revolut of 2024—a profitable company with a cleaned-up share structure and more robust auditing. This serves as a warning to other fintechs: Profitability is no longer a substitute for rigorous governance.

Conclusion: The Final Countdown to an IPO

The receipt of the restricted license is the most important milestone in Revolut’s history since its founding in 2015. It clears the path for what is expected to be one of the largest tech IPOs in London (or New York) history.

However, the "mobilisation" phase is the final test. If Revolut can successfully navigate the next 12 months without any compliance lapses or auditing "surprises," it will finally shed its image as a disruptive rebel and take its place as a pillar of the British financial establishment.