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.

While this approach has fuelled exceptional growth, it has also attracted regulatory scrutiny. Banking supervisors increasingly insist on robust control frameworks to ensure risks to customers and the broader financial system are identified early.

Valuation jumps from $75 Billion to $115 Billionfin

Since its launch in 2015, Revolut has expanded to more than 75 million customers worldwide. Last year, the company increased pre-tax profits by 57 percent to £1.7 billion on revenues of £4.5 billion.

The fintech is now among Europe’s most valuable private financial institutions. A recent secondary share transaction reportedly values Revolut at around $115 billion, placing it ahead of major European banking groups such as Barclays, BNP Paribas and CaixaBank.

As recently as November last year, Revolut was valued at $75 billion. Investors at that stage included Coatue, Greenoaks, Dragoneer and Fidelity, while Nvidia’s venture capital arm, NVentures, also participated in the transaction.

International Expansion Continues

Despite the regulatory intervention, Revolut continues to expand internationally. In Europe, the company has recently introduced products including mortgages, youth accounts and additional banking services. The group has also secured a banking licence in Mexico and has applied for a US banking charter, underlining its ambition to become a global banking player.

Revolut says it remains in continuous and constructive dialogue with regulators and is committed to strengthening its governance, risk management and internal control frameworks in line with supervisory expectations.

The scrutiny comes against a broader backdrop of regulatory concerns. UK authorities previously questioned whether Revolut’s risk infrastructure could keep pace with its rapid expansion, although the company eventually received a full UK banking licence earlier this year.

More recently, Italian regulators fined Revolut €11.5 million for allegedly providing customers with misleading information regarding fees and conditions attached to certain investment products.