The Bank of London has agreed to halt new customer onboarding after the UK's Financial Conduct Authority imposed formal restrictions on the fintech lender. The company, which reached a $1.1bn valuation in 2021, has been under a de facto freeze since August 2025, according to its website. The formal agreement came just days before the Bank of England's Prudential Regulation Authority fined the bank £2mn for breaching more than a dozen rules.

This latest setback follows revelations that former senior managers, including founder Anthony Watson, knowingly misled regulators about the bank's capital position between October 2021 and May 2024. The PRA found the bank attempted to conceal its financial health through fabricated documents. During this period, the fintech's holding company had former Goldman Sachs heavyweight Harvey Schwartz and Lord Peter Mandelson on its board, though neither was accused of wrongdoing.

The restrictions mark another blow to the lossmaking fintech, which widened its net loss to almost £24mn in 2024. The FCA's use of voluntary restrictions serves as a discreet regulatory tool, allowing supervisors to address concerns without formal enforcement action. The bank's auditors EY expressed 'significant doubts about going concern,' highlighting its reliance on parent company funding.