The Bank of England will reportedly reject Revolut’s banking license application over concerns around its information technology (IT) systems.
The bank’s Prudential Regulatory Authority (PRA) said last week that it planned to issue a warning to Revolut in March after reviewing its initial application. Negotiations to rescue the application are underway after the PRA didn’t follow through on its warning.
Revolut Maintained Flawed Financial Controls, Says License Authority
The PRA initially cited concerns around Revolut’s balance sheet after the fintech underwent an audit.
Financial services firm BDO found problems with how Revolut’s IT system assured its revenue streams. The accounting firm said flaws in the system meant it could not verify $540 million of Revolut’s revenue, including income gleaned from crypto trading.
Revenues gleaned from crypto trading comprised one-third of the firm’s fees in 2021.
A U.K….
