City minister tells Revolut he can't influence his banking license application

Revolut chief Nikolai Storonsky criticized Britain's «extreme bureaucracy». Credit: PILAR OLIVARES/REUTERS

City The minister told Revolut executives he could not influence a stalled application for a UK banking license in a rare meeting with Britain's most valuable fintech company.

Andrew Griffith and officials held talks with Nikolai Storonsky and Martin Gilbert, chief executive and chairman of Revolut, for the first time earlier this month.

It came as the company struggled to salvage its Bank of England application to become a fully authorized lender.

Sources said that when Revolut's application for obtaining a license, Mr. Griffith said that this is a matter for the regulators, and he cannot speak about it or influence the decision.

One source added that Mr. Storonsky and Mr. Gilbert acknowledged that «the ball was in their side» in terms of its application and understood why Mr. Griffith was unable to discuss the matter.

A Revolut spokesman said the company did not ask Mr. Griffith to intervene.

This comes after The Telegraph reported in May that the Bank of England had told the Treasury it plans to reject Revolut's application for banking license and is going to issue a formal warning to the company.

However, it is clear that the warning was not issued and the company continues to actively seek a banking license in the UK.

Despite the fact that it has a banking license in Lithuania, the application in the UK is considered a key milestone in the activity Revolut. development that could help unlock additional funding in a tougher market for tech companies.

Revolut has had dire consequences for several months, including the resignation of two senior executives and a warning from an independent auditor that the company's 2021 revenue «may be materially misstated».

City Minister Andrew Griffith met with Revolut bosses earlier this month. Photo: Fiona Hanson. The Prudential Regulatory Authority (PRA) is trying to salvage its application for a banking license.

Previously, the PRA recommended that Revolut prepare reports with an unqualified audit opinion and simplify its share structure before the license could be granted.

It is understood that Mr. Griffith spoke to Revolut bosses about the company. long-term expansion plans and the state of the UK fintech sector.

In May, Mr Storonsky spoke out against Britain's «extreme bureaucracy» and raised the issue of moving the company overseas.

One source called negotiations «long-term commitment», «short» and «general relationship meeting.»

A Revolut spokesperson said: «We have not asked and will not ask Andrew Griffith to interfere with our UK banking license application. To suggest otherwise is completely wrong.”

A Treasury spokesman said: “Revolut employs thousands of Britons and has millions of UK customers. This meeting was part of the ministers' usual interaction with the financial sector. Applications for a banking license should be decided by regulators, not ministers.”