According to a report by the Financial Times, European regulators required the London-based neobank to overhaul its product approval processes after identifying shortcomings in governance, risk management and compliance structures.
As part of the supervisory measures, Revolut was instructed to ensure that future products receive formal sign-off from qualified in-house specialists. The bank’s board was also asked to assess how new offerings could affect the group’s capital and liquidity position.
In addition, regulators ordered an independent review of Revolut’s risk, compliance and legal functions. Outside Europe, the restrictions were reportedly even stricter, temporarily limiting acquisitions and customer expansion activities.
Speed versus Control
The case highlights the challenge facing many fast-growing fintech companies. Revolut founder and chief executive Nik Storonsky has long promoted a culture of entrepreneurial autonomy, encouraging teams to develop and launch products rapidly.
