Sifted quotes Shaanil Senarath-Dassanayake on Revolut not yet having its full UK banking license

As reported by the Sifted, a Financial Times-backed publication aimed at entrepreneurs and start-ups, Revolut received authorisation for its long-awaited UK banking licence in July 2024, following a "gruelling three-year process", in which regulators scrutinised the company extremely closely.

But one year later, Revolut’s banking licence reportedly remains in the “mobilisation” period, awaiting a final sign-off before it can start operating as a fully licensed bank in its home market. 

The piece goes on to explain that, according to many industry experts, it's no particular surprise that it is taking much longer than expected for Revolut to leave this restrictive period, the company is likely subject to increased scrutiny from regulators, and that "the fintech’s gargantuan size [...] has also politicised the process".

Shaanil Senarath-Dassanayake, Associate in our Financial Services Regulation & Funds team, provides her insights in the article, and agrees that Revolut’s size and scale has indeed likely slowed the process down. She explains:

These issues touch on key parts of the FCA’s assessment as the conduct and AML regulator of banks [...] It highlights potential compliance issues for Revolut’s UK banking business, particularly if the UK business is relying on intragroup arrangements with other Revolut businesses, systems, and processes that were subject of these breaches.

Shaanil also explains that Revolut’s position as one of the most valuable tech companies in Europe and its undecided location for a future IPO could give it leverage with regulators. But, she says: 

When it comes to supervising authorised firms, I don’t think Revolut will, nor do I think that they should, get special treatment from the regulators.

Read the full article in Sifted here (subscription required).