Revolut Faces ECB Scrutiny as Rapid European Expansion Triggers Requests for Internal Fixes

Regulators push Revolut to strengthen internal controls

London and Frankfurt. The rapid expansion of British challenger bank Revolut has drawn the attention of European regulators, with reports suggesting the European Central Bank (ECB) has asked the firm to make improvements to its internal processes. Revolut said it is in continuous and constructive dialogue with supervisors, and reiterated its commitment to meeting the highest standards of governance and risk management.

According to a Financial Times report, the ECB raised concerns last year about Revolut Bank UAB the groups operating bank within the European Economic Area (EEA). Regulators were reportedly worried that the companys product roll-out processes were not keeping pace with its growth, and they asked Revolut to strengthen controls around the launch of new services.

The ECB is also said to have imposed restrictions on the European arms ability to pursue acquisitions or to onboard customers outside the continent while those concerns are addressed. The central bank declined to comment publicly on the report.

Growth, new licences and broader ambitions

Revolut has been among the fastest-growing digital banks globally. The company reported record results in the latest financial year: net profit rose by roughly 60 percent to €1.5 billion. By the end of 2025, Revolut reported 68.3 million customers worldwide, including about three million in Germany.

In the EU the group has operated under a Lithuanian banking licence, while in March it secured a full UK banking licence after a multi-year review by the UK regulator. That UK licence allows Revolut to accept deposits and lend them as mortgages and other loans a capability it is already using to compete aggressively on retail rates. For a limited time it offered a marketed one-day deposit rate of 5 percent, substantially above the offers of many incumbent banks.

Revolut has also sought banking licences elsewhere, including applications in France and the United States, where it plans to build a local banking operation. In 2025 the company expanded physical presence with branches and licences or local operations in markets such as Portugal, Belgium and Hungary, and rolled out savings and mobile services across multiple EEA countries.

Market observers in London expect Revolut could pursue an initial public offering within the next two years. The firm founded in 2015 by Nikolay Storonsky achieved valuation marks of around $75 billion in recent financing rounds. Bloomberg reported in early June that Revolut was seeking an additional pre-IPO financing round that could push its valuation to roughly $115 billion ahead of a public listing.

Regulatory scrutiny of product governance and growth controls is a familiar tension for high-growth fintechs: regulators aim to ensure that rapid customer acquisition and new offerings do not outpace the banks ability to manage operational and compliance risks. Revoluts public response emphasizes remediation and a willingness to strengthen its internal control environment to meet supervisory expectations.

For investors and customers, the key questions will be whether the group can implement the demanded improvements without slowing its commercial momentum, and how any restrictions or supervisory conditions might shape its expansion plans and path to an IPO. For now, Revolut remains a dominant growth story in digital banking but one operating under closer regulatory oversight in Europe than before.