Revolut is reportedly experiencing further delays in obtaining a full UK banking license, primarily due to regulators’ concerns regarding the fintech’s risk controls for cross-border payments. In a separate development, the company has acquired Swifty, an AI travel agent that was incubated at the Lufthansa Innovation Hub.
Revolut received approval for a UK banking license last year after a lengthy three-year negotiation with regulators, which initiated a ‘mobilisation’ stage. During this phase, the banking division can only accept total deposits of up to £50,000 while it enhances its controls and infrastructure. Initially, it was anticipated that this stage would be completed within a year, but as of July 25, that timeline has passed without further progress.
According to the Financial Times, the Financial Conduct Authority and Prudential Regulation Authority have raised concerns about how Revolut manages its cross-border payments. They are seeking assurances that the company will strengthen its risk management controls as it rapidly expands internationally. Revolut recently disclosed a five-year global strategy involving a £10 billion investment aimed at creating 10,000 jobs, with a goal of reaching 100 million customers by mid-2027 and entering 30 new markets by 2030.
The prolonged mobilisation period has led to tensions between Bank of England Governor Andrew Bailey and Chancellor of the Exchequer Rachel Reeves. Reeves advocated for a meeting involving Treasury officials, the PRA, and Revolut to address the issues hindering the company’s progress, but her efforts were countered by Bailey, who canceled the proposed meeting.
In another significant move, Revolut has acquired Swifty, an AI-driven travel agent that will enhance the company’s loyalty and lifestyle offerings. Co-founders Stanislav Bondarenko and Tomasz Przedmojski will join Revolut, focusing on integrating Swifty’s AI technology. Christopher Guttridge, head of loyalty at Revolut, stated, “This acquisition strengthens our position at the intersection of finance, AI and lifestyle, allowing us to provide more personalized and seamless experiences for our customers.”