No businesses applied for a UK banking licence in 2025, raising doubts about the government’s push to position Britain as a fintech hub. Applications fell from six in 2024, when three first-time applicants and three resubmissions were processed. *Revolut*, the fintech giant, finally secured its UK banking license after a five-year regulatory battle, with CEO Nik Storonsky condemning the process as “extreme bureaucracy.” This delay highlights lingering challenges in modernizing the UK’s financial regulatory framework.

To boost appeal, finance minister Rachel Reeves announced tailored support for scaling banks and insurers, with plans to extend aid to other fintechs. The new *Scaleup Unit* aims to streamline interactions with regulators, offering a “clear point of contact” to address compliance queries. These measures seek to counter perceptions of inflexibility that have driven firms like *Revolut* to voice frustration.

Money transfer fintech *Wise* is reportedly exploring a UK banking license application, having recently launched a UK current account. *Klarna*, the buy-now-pay-later leader, expanded into banking with instant peer-to-peer payments in January. These moves signal growing fintech interest despite the current application drought, suggesting regulators may yet regain traction.

This silence underscores the urgency of overhauling Britain’s fintech regulatory environment. Without faster, more predictable licensing processes, the UK risks losing ground to competitors like Singapore and the EU in attracting innovative financial services.