The Bank of England has ordered a skilled-person review of Revolut’s internal controls and product approval procedures as the fintech expands its UK lending operations under a full banking licence obtained earlier this year.
The central bank’s Prudential Regulation Authority issued a Section 166 order earlier this year to scrutinise how the rapidly growing financial technology firm clears new offerings. The order, which coincides with Revolut’s acquisition of a full UK banking licence in March, requires the company to appoint independent accounting or legal experts to evaluate its internal systems.
Bank of England orders review of Revolut’s product approval processes https://t.co/hcmF3D8BIw
— https://x.com/FT/status/2114957238418702706
Section 166 Order Examines Rapid Product Growth
A Section 166 investigation functions primarily as an evidence-gathering instrument for regulators. Under this mechanism, the regulated firm must hire outside specialists to audit internal governance and risk controls. If the resulting report uncovers rule breaches or systemic weaknesses, regulators retain the power to levy financial penalties or pursue enforcement actions.
The scrutiny follows a period of immense commercial growth. Revolut has attracted more than 80 million customers in just over a decade of operation. Its current valuation stands at $115 billion, surpassing the market capitalization of three out of the four largest traditional high-street banks in its home market.
Prior to the UK central bank’s intervention, the Bank of England had delayed granting a licence due to apprehensions that internal risk frameworks might fail to keep pace with rapid overseas operations. People familiar with the matter stated that the current evaluation examines specific risks tied to the swift introduction of financial products.
Revolut Expands into Personal Loans and Private Tech Investments
The regulatory review coincides with a major expansion into consumer credit. Revolut announced plans to provide unsecured personal loans ranging from £2,000 to £25,000. Alongside the lending push, the company revealed a partnership with asset management firm Carne to let clients invest in privately held technology companies, expanding a diverse business model that already spans cryptocurrency trading, card payments, and subscription services.
Bank of England Seeks Review of Revolut’s Product Approval Controls, According to FT
— https://x.com/FirstSquawk/status/2114946007515664531
Chief Executive Nik Storonsky has previously encouraged internal teams to operate with minimal bottlenecks. According to reporting cited by financial outlets, he has urged employees to act like self-guided missiles
, developing new products with limited oversight.
That decentralized product development model has previously drawn regulatory friction abroad.
🇬🇧 NEWS: Bank of England wants Revolut's product sign-off controls reviewed
— https://x.com/WorldInMotionHQ/status/2114946549427892353
Banking Licence Enables Retail Deposits and Global Growth Goals
Securing the UK banking licence required years of negotiations as executives worked to satisfy regulatory anxieties regarding the speed of international expansion. The approval represents a cornerstone for the company’s long-term strategy, enabling its UK banking arm to accept retail deposits and compete directly in lending markets historically dominated by established institutions.
Management is aiming to expand the company’s geographical footprint from 40 countries to 70 countries by 2030. Both Revolut and the Bank of England declined to comment on the ongoing Section 166 review.
