Revolut, a British FinTech company, may have moved one step closer to receiving its U.K. banking licence.
According to a Revolut representative, the business is anticipated to approve its 2021 financial records this week as part of an audit.
“Our accounts have been finished, and we anticipate that the news that we are profitable will be confirmed. We aim to file the accounts soon and are really proud of this.
A Financial Times (FT) article from Sunday that cited insiders with knowledge of the situation was also news. It states that the submission, which attests to Revolut’s profitability, is anticipated to be approved by auditor BDO.
Revolut was under pressure to strengthen its internal controls over financial reporting last year after the UK’s Financial Reporting Council discovered that the company’s audits were deficient and carried a significant risk of “misstatement.”
Revolut’s payments division lost a number of important employees in its risk and compliance teams, according to a previous FT investigation.
Because they’re being beaten up by their authorities, the auditors are being much more difficult today, a source told the FT.
A different source claimed that Revolut needed to enhance “unsexy aspects like its back office and controls” since it requires a culture more akin to a bank than a startup company.
The prolonged wait for the report has cast a shadow on the company’s finances as authorities push it to strengthen its audits and internal controls for financial reporting, as was noted last month in an article about neobanks striving to become profitable.
Neobanks that haven’t made a profit yet would probably claim that business is a marathon, not a sprint, the author said. But those who don’t will face further pressure to provide an explanation now that several of the top companies in the sector have reported positive margins.
Revolut provided Irish users with local bank accounts last month as part of its ongoing effort to expand throughout Europe.
