The ECB’s review centered on the company’s New Initiatives Approval Process, the internal rulebook governing how Revolut Bank UAB brings new features to market. While the regulator declined to provide specifics on whether these curbs remain active, reports indicate the bank was ordered to commission an independent audit of its risk, compliance, and legal functions. Revolut maintains that it remains in constructive dialogue with regulators and has since strengthened its internal control environment through increased specialist oversight.
ECB Restricts Revolut Product Launches Over Governance Concerns
The European Central Bank curbed the ability of digital banking platform Revolut to roll out new products across the European Economic Area last year, citing significant shortcomings in the firm’s internal approval processes. The regulatory intervention highlights the ongoing scrutiny facing high-growth financial technology firms operating under full banking licenses.
Despite the regulatory friction, the firm has continued to expand its footprint, launching branches in Portugal, Belgium, and Hungary while introducing local IBANs and specialized savings products. This expansion coincides with ambitious growth, including reaching seven million clients in France and six million in Spain. Revolut is now preparing to enter the competitive private banking sector, targeting individuals with at least £500,000 in assets. This segment is increasingly contested, with firms like Monument Bank and JPMorgan Chase vying for the mass-affluent market, which currently holds over £4 trillion in wealth across the UK alone.
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