The Bank of England has ordered a review of Revolut's product approval processes, issuing a section 166 order earlier this year to examine risks around the fintech's rapid new product launches. The order coincides with Revolut's recent full banking licence approval in March, which allows the company to expand into personal lending markets. The review aims to assess the robustness of Revolut's internal systems and controls as the company grows to over 80 million customers and a valuation of $115 billion.
Revolut plans to launch unsecured personal loans between £2,000 and £25,000 and has partnered with asset management firm Carne for private tech investments. However, the expansion has drawn regulatory scrutiny, with the European Central Bank previously imposing growth restrictions due to "deficiencies" in Revolut's product approval processes. A previous FT report also noted the Bank of England delayed the licence award due to concerns about risk controls keeping pace with overseas growth.
The section 166 order, a skilled-person review, forces firms to appoint expert advisers to examine internal systems, with regulators able to impose penalties if failures are found. Revolut and the Bank of England declined to comment on the ongoing review.
Source: Financial Times Companies · Summarized by HeadlinesBriefing