British FinTech business Revolut could have made progress towards obtaining its U.K. banking license.
The company is expected to approve its 2021 financial records this week as part of an audit, a Revolut spokeswoman said.
“Our accounting has been completed, and we expect confirmation of the news that we are profitable. We are quite happy about this and hope to file the accounts soon.
It was also reported in a Financial Times (FT) piece dated Sunday that included people with knowledge of the circumstance. The proposal, which attests to Revolut’s profitability, is expected to be accepted by auditor BDO, according to the statement.
The UK’s Financial Reporting Council said that Revolut’s audits were flawed and constituted a substantial risk of “misstatement,” which put pressure on the business to improve its internal controls over financial reporting.
According to a prior FT investigation, Revolut’s payments business lost a number of key members of its risk and compliance teams.
The auditors are being considerably tougher today since they are getting beaten up by their authorities, a source told the FT.
Revolut, according to a second source, needed to improve “unsexy things like its back office and controls” since it needs a culture more in line with a bank than a startup business.
As was mentioned last month in an article on neo banks seeking to become profitable, the protracted wait for the report has put a shadow on the company’s finances as regulators pressure it to enhance its audits and internal controls for financial reporting.
The author said that unprofitable neobanks would likely assert that running a business is like running a marathon rather than a sprint. Nevertheless, now that a number of the leading businesses in the industry have reported good margins, those that don’t will come under increased pressure to give an explanation.
In its continued push to grow across Europe, Revolut last month gave Irish customers access to local bank accounts.
