The Financial Times reported, citing sources, that the Bank of England has initiated a review of the procedures employed by the digital bank Revolut, established by billionaire Nikolay Storonsky, for approving new products.
As stated by these sources, the Prudential Regulation Authority (PRA), a division of the Bank of England, released a “Section 166 notice” earlier this year to investigate the risks linked to the swift introduction of new financial products at Revolut.
The command was given around the same period when Revolut obtained a complete UK banking license in March and started broadening its activities, according to the sources. The license permits Revolut’s UK branch to take deposits and participate in the consumer lending sector. Revolut has expressed its goal to grow its operations from 40 countries currently to 70 by the year 2030.
A “Section 166” process, often referred to as a “skilled person review”, mandates that an organization engage an impartial third party, like an audit or legal firm, to evaluate its internal systems and control measures, as detailed by the FT.
The report states that in slightly more than ten years, Revolut has expanded its user base to over 80 million individuals and achieved a valuation of $115 billion—an amount surpassing the market capitalization of three out of the four largest conventional banks in the UK.
source: ft.com
