Revolut, the fintech company striving to become a global ‘super app’ and secure a UK banking licence, has encountered another setback with the resignation of its CFO, Mikko Salovaara. 

Salovaara, who joined the neobank in January 2021 as Vice President of finance, and quickly ascended to the position of group CFO just four months later, cited personal reasons for his departure. 

His resignation follows the recent revelation by auditor BDO, which stated its inability to independently verify 75% of Revolut’s revenue in the delayed 2021 accounts.

Revolut’s Former CEO Embroiled in Controversy

Adding to the fintech’s challenges, Revolut’s former CEO, James Radford, who stepped down earlier this year, found himself entangled in controversy. 

In an unfortunate incident, it was reported that the ex-CEO inadvertently texted an unhappy customer, expressing an alarming message involving personal threats. This exchange occurred after the customer had reached out with complaints regarding their case, contacting Radford’s personal phone. 

Furthermore, a formal complaint had been filed against Radford in March, preceding his departure, though it is claimed that his exit was unrelated and motivated by a new professional opportunity.

Ongoing Regulatory Delays for Revolut’s UK Banking Licence

On top of other controversy, Revolut continues to face a protracted waiting period for its UK banking licence, impeding its ability to provide expanded financial services to its British customers. 

Despite the usual processing time for a new licence being under a year, Revolut’s application, submitted in January 2021, has languished for over two years without approval, which has been cited as being a long and tiring process. 

What’s more, a full UK banking licence would grant Revolut the capability to offer loans and a range of other financial services to its clientele. However, the company did acquire a European banking licence from the Bank of Lithuania in December 2021.

Valuation Decline and Co-Founders’ Critique of UK Regulators

Revolut, once valued at $33 billion (£29.5 billion) in 2021, has experienced a significant decrease in its valuation, with Schroders, an investor in the company, halving its worth. 

This development marks a notable decline for one of Europe’s highest-valued private companies. 

In light of ongoing challenges, Revolut’s co-founders recently voiced their dissatisfaction with UK regulators, criticising the lengthy and arduous licensing process.

Revolut Persists with New Offerings despite Adversities

Despite the hurdles it faces, Revolut remains committed to its mission of providing innovative financial services. 

As part of its expansion strategy, fintech launched consumer loans for its two million customers in France from 30 May this year. Additionally, Revolut had previously introduced similar offerings in various markets, including Ireland, Lithuania, and Romania.

Conclusion

Revolut finds itself confronting a series of setbacks as its CFO Mikko Salovaara resigns, citing personal reasons, and revenue verification concerns emerge. 

What’s more, the former CEO’s controversial text exchange with an unhappy customer, as well as a previous complaint, further dampened the company’s image. 

Additionally, Revolut’s prolonged wait for a UK banking licence hampers its ability to offer comprehensive financial services. Nonetheless, Revolut remains resilient, continuing to introduce new features and expand its operations despite its ongoing challenges. 

It is clear that as fintech continues to strive for success in an increasingly competitive landscape, its ability to overcome these obstacles will no doubt continue to shape its future trajectory.