Latest news with #Revolut
The Guardian
2 hours ago
- Business
- The Guardian
Bank of England governor blocks Rachel Reeves's Revolut meeting
The governor of the Bank of England blocked a meeting that Rachel Reeves tried to secure with watchdogs and Revolut, amid concerns the chancellor was meddling in an independent process over the fintech's UK banking licence. Andrew Bailey intervened after learning of the plan to bring together representatives from Revolut, the Treasury and the Bank's regulatory arm, the Prudential Regulation Authority, to discuss the fintech's ambitions to become a fully authorised UK bank. The three-way meeting, first reported by the Financial Times, had been due to take place in the past few weeks but was cancelled over concerns that the central bank's regulatory decisions should be independent from government interventions and influence. A Treasury spokesperson said: 'The chancellor and the governor have a strong and productive relationship, and the government fully supports the operational independence of the Bank of England.' The Bank declined to comment. The meeting would have been part of the government's charm offensive, with ministers desperate to convince Revolut – last estimated to be worth $45bn (£33.6bn) – to choose London for its much-awaited stock market debut primary listing. Ministers have been spooked by comments from Revolut's co-founder and chief executive, Nik Storonsky, who suggested last December that New York could be a better fit because of the regulatory environment and the size of the market. Losing Revolut, which is Europe's most valuable private fintech, would represent a major blow to the City and the London Stock Exchange, which has suffered from a growing number of defections, with companies snubbing the UK for listings abroad. The chancellor has also been urging UK watchdogs to support financial firms in the name of growth, having gone so far as to claim in her Mansion House speech this month that regulation was acting as a 'boot on the neck' of businesses. Revolut secured a limited UK banking licence last year, after a rare three-year wait, having had to convince regulators that the company had addressed a number of accounting issues and EU regulatory breaches, as well as reputational concerns, including an overaggressive corporate culture. The fintech company says it has since resolved those accounting and regulatory problems, and has made efforts to improve its working culture. However, the fintech was only granted a restricted licence and, 12 months on, has yet to have its application fully authorised. The restrictions mean it cannot currently offer its own loans in the UK, and while it can hold customer deposits, they are capped at £50,000. Banks are usually put under these restrictions until they can prove they have appropriate staff, IT systems and governance and accountability checks in place to satisfy officials. Revolut has been hoping to gain full approval from UK regulators this year. A fully fledged licence would open the door to new income streams, as being able to hold customer deposits would allow it to start funding own-branded loans and mortgages. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion It would also mean it face stricter regulations and make it part of the compensation scheme. A full licence was expected to be the first step in open the door to banking licences in other countries, including the US. Revolut has already secured an EU banking licence through Lithuania. However, in the absence of UK approvals, it has emerged that Revolut is considering buying an American bank in order to secure an American banking licence and accelerate its expansion stateside. The fintech company originally launched as a pre-paid card focused on free currency exchange for customers. It has since grown to more than 10,000 staff, serving customers in more than 36 countries, with more than 50 products and services. As well as money transfers, it offers home rentals, buy now, pay later credit, wage advances, e-sims for mobile data plans and crypto trading. Its annual report in April showed Revolut more than doubled its annual profits in 2024, jumping almost 150% to £1bn, thanks to a rise in subscriptions, and revenues from its wealth and crypto trading divisions.
Newsweek
4 hours ago
- Automotive
- Newsweek
Audi F1 Reveals Huge Title Sponsor Ahead of 2026 Season
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Audi F1 team announced its partnership with Revolut, a financial technology company based in the U.K. that offers banking services. Audi is preparing for its debut on the Formula 1 grid in 2026 as the team transitions from Sauber into a new race team with the title of the German car manufacturer. A key part of any F1 team's success is the sponsorship money, and as the title sponsor for Audi's debut season, Revolut is set to finance the team's racing success. Revolut is a company that offers money exchange and transfers in England, allowing people to control their finances through accounts. A detail shot of an Audi F1 car after it was announced that Audi will join F1 as an engine supplier from the 2026 season prior to practice ahead of the F1 Grand Prix of... A detail shot of an Audi F1 car after it was announced that Audi will join F1 as an engine supplier from the 2026 season prior to practice ahead of the F1 Grand Prix of Belgium at Circuit de Spa-Francorchamps on August 26, 2022 in Spa, Belgium. More Photo by"Audi is entering Formula 1 with a clear ambition: to use the platform as a technologically relevant and economically sustainable investment in the future of the Audi brand," Gernot Döllner, CEO of AUDI AG and Chairman of the Board of Sauber Motorsport, said in a statement. "We firmly believe in the success of our project, which we are approaching with a realistic attitude and a mindset of continuous improvement. "In Revolut, we have found a partner that shares our ambitions and attitude. Formula 1 is a global stage that offers us the opportunity to reach new target groups together and generate enthusiasm for our products." In an announcement from Audi, it was revealed that the Revolut Business platform will be integrated into the team's financial operations. "This is a monumental partnership for Revolut and the future Audi F1 Team," Nik Storonsky, CEO of Revolut, added in the statement. "We're accelerating towards 100 million customers, and we'll be bringing them into Formula 1 with unforgettable experiences at a pivotal time for the sport. "As Revolut continues to challenge the status quo in global finance, the future Audi F1 Team is set to do the same in motorsport. "With a shared outlook, global ambition and relentless drive for progress, this partnership will define what's possible in Formula 1." Banking or money management sponsorships are a regular occurrence on the grid. Most teams have a cryptocurrency or digital banking sponsor. While the team starts at a disadvantage as it opens up its facilities, they are working on a power unit for 2026 and will become a works team. For more F1 news, head on over to Newsweek Sports.
CNBC
5 hours ago
- Business
- CNBC
Why Revolut's journey to become a UK bank is taking so long
LONDON — A year on from securing its initial U.K. bank license, Revolut is still awaiting full authorization from regulators. The fintech giant was granted a banking license with restrictions in July 2024 from the U.K.'s Prudential Regulation Authority (PRA), bringing an end to a years-long application process that began back in 2021. The PRA is a unit of the Bank of England. This key victory moved Revolut into what's known as the "mobilization" phase of a company's journey toward becoming a full-fledged bank. During this period, firms are limited to holding only £50,000 of total customer deposits — well below the hundreds of billions of pounds customers deposit with major high street lenders such as Barclays, HSBC and Santander. Revolut customers in the U.K. are also still served by the company's e-money unit, instead of its banking entity. This means they are not directly insured by the Financial Services Compensation Scheme, which protects customers up to £85,000 if a firm fails. Roadblocks and the sheer size of Revolut are among the many reasons why the firm's bank authorization process is taking longer than expected, analysts told CNBC. Revolut is currently still awaiting its consumer credit license, which would enable it to offer credit cards and other services in the U.K. Meanwhile, the Financial Times reported Tuesday that a meeting arranged by British Finance Minister Rachel Reeves with Revolut and the PRA was cancelled after an intervention from Bank of England Governor Andrew Bailey. CNBC was unable to independently verify the report. The BOE declined to comment and the Treasury did not immediately respond to CNBC's request for comment. A spokeswoman for Revolut said that while the firm was unable to comment on specifics, the company remains on track to launch a fully regulated U.K. bank this year. "We are progressing through the final stages of mobilisation and continue to work constructively with the PRA," she told CNBC via email. "Given Revolut's global scale, this is the largest and most complex mobilisation ever undertaken in the UK. A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date." Barney Hussey-Yeo, CEO of fintech firm Cleo, said that "anti-growth regulatory posture" from the U.K. was likely a contributing factor in the delays to Revolut exiting its mobilization phase. "Revolut is already a regulated bank in over 30 countries, including some of the toughest jurisdictions in the world," he told CNBC, noting the company is worth more than some major U.K banks on a rumored $65 billion valuation. "If that's not enough scale or rigour for the PRA, it raises serious questions about the UK's regulatory expectations — because they now look excessive," Hussey-Yeo added. Regulators are nervous about getting it wrong due to the lingering "scar tissue" of the 2008 financial crisis, said Simon Taylor, head of strategy at fraud prevention platform Sardine AI. "The U.K. has historically had one of the single most risk-averse regulatory postures in the world when it comes to capital requirements, especially," he told CNBC. Another factor at play is Revolut's size. No other firm has entered the mobilization phase of bank authorization with more than 500,000 customers. Revolut serves over 10 million customers in the U.K. Once it exits the mobilization phase, Revolut would need to gradually start migrating customers to its U.K. banking entity — a significant undertaking. This, coupled with Revolut's already lengthy history in the U.K. market and complaints over fraud, makes it a "complex player to authorize," according to Taylor. "A lot of the larger banks historically complained about Revolut being a major source of their fraud risk," he told CNBC. "My guess is that these complaints and issues have shown up in the BoE's regulatory reports, and they have material, well grounded concerns." Still, Taylor conceded that Revolut has "some of the most sophisticated technology to detect and prevent these issues, and has been at the front line of dealing with the scams issue." Ensuring Revolut obtains full authorization to operate a bank is important for the U.K. government — particularly as it faces criticisms from the tech industry that changes to the non-domicile tax status, along with increased taxes on capital gains, have created a hostile environment for entrepreneurs. "Every element of wealth capture for the U.K. — jobs, taxes, equity gains — has been eroded," Cleo's Hussey-Yeo said, adding that there was a heightened risk that richly valued fintechs like Revolut could move their global headquarters outside of the U.K. if such measures continue. Taylor said Revolut receiving full bank authorization "would be a massive symbolic win" for the government. "The Chancellor [of the Exchequer] cannot afford to lose Revolut to another jurisdiction — but Revolut looks at a global market and sees lots of willing suitors for its business, and very little willingness from the U.K.," he told CNBC.
Forbes
6 hours ago
- Automotive
- Forbes
Audi And Revolut Join Forces To Transform The Future Of F1
Audi Revolut Title Partner Audi As the 2026 FIA Formula One season approaches, a thrilling new partnership is set to accelerate the sport into the future. Audi, the iconic German luxury automaker known for its precision engineering and design, is making its much-anticipated debut as a factory-backed F1 team — and they're bringing a revolutionary new partner along for the ride. Fintech powerhouse Revolut, with over 60 million global users, has signed on as the title sponsor of the future Audi F1 Team. Together, they aim to redefine the Formula 1 experience by fusing cutting-edge technology with premium, fan-first engagement. For the first time, the high-octane world of motorsport will blend seamlessly with digital innovation, giving fans exclusive access and unique experiences throughout the race weekends. Imagine intuitive, frictionless shopping for team merchandise powered by Revolut's sleek payment solutions, alongside behind-the-scenes interactions that tap into a fresh generation of enthusiasts hungry for something beyond the track. Audi's CEO Gernot Döllner captures the spirit best: 'Formula 1 is a global stage that offers us the opportunity to reach new target groups and generate enthusiasm for our products.' For Audi, this leap into Formula 1 is not just about speed—it's a strategic, sustainable investment reflecting their commitment to electrification and cutting-edge technology. The sport's upcoming shift toward hybrid power and sustainable fuels mirrors Audi's own vision for a premium, eco-conscious future. Revolut's CEO Nik Storonsky adds, 'We're accelerating towards 100 million customers, and we'll be bringing them into Formula 1 with unforgettable experiences at a pivotal time for the sport.' This partnership represents more than branding—it's a strategic alliance built on a shared passion for innovation, ambition, and pushing boundaries. With operations spread across Germany, Switzerland, and the UK's legendary Motorsport Valley, the Audi F1 Team is poised to combine world-class engineering with the glamour and thrill of Formula 1's global spectacle. For lifestyle connoisseurs and motorsport fans alike, the 2026 season promises a fresh chapter — where luxury design, digital innovation, and race-day excitement merge into one seamless, exhilarating experience.
Bloomberg
6 hours ago
- Business
- Bloomberg
Klarna Secures New License from UK's Financial Conduct Authority
Klarna Group Plc said it has received an electronic money institution license for its UK division, which could lay the ground work for the Swedish fintech to more directly compete against the likes of Revolut Ltd. and Monzo Bank Ltd. for retail bank customers. The approval means Klarna — which is best known for its buy now, pay later services — will be able to offer its 11 million UK customers accounts where they can save funds, according to a statement. It will also allow Klarna to launch a debit card in the UK.
