Revolut hit by departures of CFO and UK banking chief

Revolut has misplaced its UK banking chief govt and group chief monetary officer, the newest departures from the London-based fintech whose tradition has drawn scrutiny from regulators even because it seeks a banking licence in its residence market.

James Radford, chief govt at Revolut NewCo UK, the entity meant to accommodate the UK banking licence, left in March, in line with his LinkedIn profile and paperwork filed with Corporations Home, the UK’s company registry. His departure has not beforehand been reported.

Individually, Revolut mentioned on Thursday that chief monetary officer Mikko Salovaara was leaving the fast-growing fintech “for private causes” after two years within the job.

The corporate continues to be awaiting a banking licence in its residence market 28 months after first making use of for one.

Whereas its utility has been pending with the Prudential Regulation Authority and the Monetary Conduct Authority, Revolut has misplaced a number of of essentially the most senior executives in its UK banking staff. It has additionally confronted an FCA-mandated evaluation of its tradition, which executives say has since been improved.

In the meantime, its auditor BDO warned in March that there was a threat that revenues had been “materially misstated” in its delayed 2021 accounts.

Radford left Revolut after three years to change into chief govt for monetary providers at UK-based digital community operator Lycamobile. Previous to his time at Revolut, he had stints as chief govt of the Cheque and Credit score Clearing Firm, which manages cheque clearing throughout the UK, in addition to chief working officer at Aldermore Financial institution.

Richard Holmes, chair of Revolut UK, confirmed Radford’s departure and mentioned: “We want [Radford] all one of the best in his new function at Lycamobile, and we stay up for asserting his successor quickly.”

In the meantime, Salovaara mentioned he was “grateful for the chance” and “stay[ed] assured within the agency’s future success”.

Salovaara joined the corporate as vice-president of finance in January 2021 after roles together with CFO for China and the Asia-Pacific at Kraft Heinz and an investor at Elliott Advisors. He was promoted to group CFO after 4 months at Revolut.

Revolut, which was valued at $33bn in a 2021 funding spherical — a then document for a privately held UK tech group — first lodged an utility for a UK banking licence in January 2021. It obtained a European banking licence from the Financial institution of Lithuania in December 2021.

A UK financial institution licence would enable it to supply loans and different providers to the greater than 5.8mn shoppers it already has within the nation. It could additionally act as a seal of approval to assist win different banking licences in vital markets.

Two months in the past, Salovaara, who was not a central determine within the licensing utility, informed the FT that approval was coming “any day now”. Chief govt Nik Storonsky beforehand mentioned in November 2021 that he hoped to safe a banking licence early in 2022.

The standard turnround time for licences to supply monetary providers within the UK is lower than a 12 months.

Final week, Storonsky blamed current banking turmoil for the newest delays to its licence, claiming that the reason for the maintain up “is actually not us”. 

The FCA declined to remark. The PRA didn’t instantly reply to requests for remark. Revolut mentioned it didn’t touch upon regulatory affairs.

Extra reporting by Laura Noonan in London 

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