Fintech brand Revolut revealed further governance improvements as it announced revenue surging 72% year-on-year, reaching £3.1 billion, up from £1.8 billion in 2023.
Once criticised for its governance shortcomings, the London-based digital bank has transformed itself following scrutiny over its compliance practices and corporate culture.
Revolut’s application for a UK banking license, submitted in 2021, encountered delays due to concerns over its internal controls and governance structures. The Financial Conduct Authority and the Prudential Regulation Authority required the company to address issues related to accounting practices and risk management before granting approval.
In response, Revolut embarked on a comprehensive overhaul of its governance and compliance mechanisms. In November 2023, it appointed Francesca Carlesi as CEO of Revolut UK. Carlesi, a seasoned banking executive and fintech founder, was brought in to help the firm attain a UK banking license. She joined Revolut from digital mortgage lender Molo (which she co-founded) and had prior senior roles at Deutsche Bank and Barclays. Her appointment added banking expertise to Revolut’s leadership and was seen as part of demonstrating a stronger management structure in the UK. Revolut’s UK chairman Richard Holmes welcomed Carlesi as “the perfect CEO to drive our UK business forward.”
It also undertook a significant board restructuring in 2024 as part of its efforts to enhance corporate governance and align with regulatory expectations. This initiative included the appointment of independent non-executive directors Fiona Fry and Sir Peter Estlin to its UK board. Fiona Fry brought more than 40 years of experience in professional services, including a 23-year tenure as a Partner at KPMG, focusing on governance and culture in the retail banking sector. Sir Peter Estlin, a former Lord Mayor of the City of London, had held senior positions in the banking sector, including roles at Salomon Brothers and Barclays.
These appointments were strategic moves to strengthen the company’s governance framework as it progressed through the mobilisation period for its UK banking licence.
Revolut also significantly increased its compliance workforce, growing its risk and compliance team from 256 to 331 employees in 2023, with a further 30% growth in the group by the end of 2024. The company also implemented advanced monitoring systems to detect and prevent financial crimes.
To address criticisms of its internal culture, it introduced the Karma system, a points-based mechanism to assess employee adherence to compliance and risk protocols. This initiative aimed to foster a culture of accountability and ethical behaviour within the organisation and has shown positive results in improving compliance actions by staff.
A significant achievement in Revolut’s transformation was obtaining a UK banking license in July 2024. This approval, granted after a three-year evaluation, signified regulatory confidence in the company’s revamped governance structures. The license enables the company to offer a broader range of financial services, including loans and mortgages, and positions it for a potential stock market listing.
Revolut demonstrates that instigating robust governance is not a constraint on achieving sustainable business success. By addressing regulatory concerns and embedding a culture of compliance and accountability, the company not only overcame past challenges but also unlocked new avenues for growth and profitability.
Financial triumph: Record-breaking profits in 2024
• Revenue Growth: The company’s revenue surged by 72% year-on-year, reaching £3.1 billion, up from £1.8 billion in 2023.
• Profit Surge: Pre-tax profits more than doubled to £1.1 billion, a 149% increase from the previous year.
• Customer Expansion: Revolut’s customer base grew by 38%, adding nearly 15 million users to reach a total of 52.5 million globally.
• Product Diversification: The company’s wealth division, encompassing stock and cryptocurrency trading, experienced a 300% year-on-year revenue increase, driven by the launch of its crypto exchange platform.
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