Revolut’s product approval mechanisms have reportedly come under the scanner of UK regulators, just months after it secured its full banking licence in the country.
The Bank of England’s Prudential Regulation Authority served the neobank with a section 166 notice earlier this year, reported the Financial Times citing sources.
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The directive focuses on assessing whether the firm’s speed in introducing new financial offerings poses unaddressed risks.
Officials initiated the supervisory step to evaluate the resilience and effectiveness of the company’s internal controls, as per the report.
Revolut received its full UK banking licence in March.
The domestic banking licence enabled Revolut to accept client deposits and enter consumer credit segments previously dominated by incumbent lenders.
Under a section 166 mandate, commonly termed a skilled-person review, an authorised institution must retain external accounting or legal specialists to audit its operational framework.
Supervisors employ these reviews to establish facts. Should the inquiry uncover procedural breaches, the regulator possesses statutory authority to levy financial penalties or pursue disciplinary sanctions.
Revolut’s latest product initiatives include introducing unsecured personal loans priced between £2,000 ($2,670) and £25,000.
The company’s commercial portfolio combines crypto trading, card payments, and paid subscription services. To drive rollouts, chief executive Nik Storonsky directs staff to operate as “self-guided missiles” with limited oversight during product creation.
That operational philosophy has triggered friction with European regulators.
The European Central Bank penalised Revolut last year by capping balance sheet expansion after detecting “deficiencies” within its product governance, as reported by the Financial Times.
The ECB mandated a third-party examination of the firm’s legal, compliance, and risk oversight units responsible for rolling out services across Europe.
