The revolut card can be seen in this illustration photo taken on March 29, 2024 in Krakow, Poland.
jakub porzycki | Parenting | Getty Images
London – Bank of England Gov. Andrew Bailey told CNBC that the long-awaited bank license for fintech giant revolver has not “collapsed.”
Last week, Financial Times reported Bailey’s intervention was canceled by the meeting arranged by British Finance Minister Rachel Reeves with Revolut and the Prudential Regulatory Agency (PRA).
Authorizing Revolut as a fully licensed bank has become an important issue for the UK government, especially the key figure in the technology industry Challenge tax changes that affect the rich.
However, in an interview with CNBC’s Ritika Gupta on Thursday, Bailey denied any suggestions that the relationship between BOE and the Treasury felt worsened by the delays in Revolut’s bank licensing approval process.
“Between (Reeves), I didn’t fall down with that or actually nothing,” he said. “We actually have a very good relationship and I think both the bank and the Treasury made it clear.”
Bailey added that while he hasn’t commented much about Revolut, prudent regulators are working with digital banking startups in their “mobilization”.
Fintech giants are indeed In July 2024, the UK PRA had restrictions on bank licenses, ending the application process for up to 2021.
This major victory shifted the revolution to what is called a “mobilization” phase of the company’s journey to become a mature bank.
During this period, the company was limited to holding £50,000 of total customer deposits – well below tens of billions of customer deposits Barclays,,,,, HSBC Bank and Santander.
Revolut customers in the UK are also serviced by the company’s electronic money department rather than their banking entities. This means they are not directly insured by the Financial Services Compensation Scheme, which protects customers up to £85,000 if the company fails.
The delays to the revolutionary revolution have been a government debate, a blast from the British tech community because it has not done enough to ensure that the country can compete effectively with the United States and other key hubs.
Bailey stressed that “there is no trade-off between financial stability and economic growth.” However, he advised that he was willing to rule the changes in order to make the fintech industry thrive.
“We are very willing to make changes where appropriate,” he said.
