Revolut: the ECB secretly froze part of its European operations

The European Central Bank secretly placed Revolut under scrutiny last summer, freezing part of its operations in Europe. The measure remained confidential, but it reveals the strains between the continent’s most ambitious neobank and the regulators seeking to keep it in check.

Revolut’s rapid rise from payments app to banking giant

It has taken Revolut ten years to evolve from a straightforward payments app into one of Europe’s most powerful fintech companies. Founded in London in 2015 by British-Russian entrepreneur Nik Storonsky, the neobank now claims 75 million customers worldwide and reported record profits of $2.3 billion in 2025, up 57%.

Its approach has been deliberate. Storonsky has long run Revolut more like a technology company than a bank, with teams encouraged to build and release products at great speed and with limited oversight.

That emphasis on speed has paid off. Revolut now offers dozens of services and claims a valuation that now exceeds those of most established major European banks, including Barclays and BNP Paribas. Its target is a stock market listing at a $200 billion valuation around 2028.

Risk management deemed insufficiently robust

This breakneck expansion has not escaped Brussels’ attention. Last summer, the European Central Bank (ECB), which supervises the eurozone’s largest banks, discreetly imposed restrictions on Revolut’s European arm, the Financial Times has revealed.

More specifically, the authority temporarily halted the launch of new financial products across the European Economic Area while the neobank addressed “failings” in its internal processes. The restrictions applied to Revolut Bank UAB, the group’s European entity, rather than to the entire organisation. It was criticised for failing to subject new products to sufficiently thorough assessment by internal specialists. A full review of its risk management, compliance and legal functions was also ordered.

Regulatory tensions in the UK and Europe

This is not the first time Storonsky has clashed with regulators. In the United Kingdom, he publicly criticised the authorities for moving too slowly and being overly “principles-based”. Revolut’s UK banking licence, finally secured in March 2026 after years of deadlock, brought that dispute to an end.

The relationship appears calmer in Europe. “We maintain an ongoing and constructive dialogue with our regulators, including the European Central Bank, as part of our routine operations as a fully licensed bank. Revolut is committed to meeting the highest standards of governance and risk management. In line with supervisory expectations, we regularly strengthen our internal control framework and operational processes,” a company spokesperson said.

Revolut continues its expansion

For now, the Financial Times has been unable to establish whether every restriction has been lifted. Since then, however, the neobank has said it has strengthened the internal review of new initiatives. Its recent activity appears to support that claim: branches have opened in Portugal, Belgium and Hungary; mortgages have launched in Lithuania; and teen accounts have been introduced in Ireland. The growth engine has not noticeably slowed.

Revolut has also obtained a banking licence in Mexico, submitted an application in the United States, and is continuing its efforts in France, where it already has 7 million customers. The case may also fuel the long-running debate over Europe’s approach, which is accused of holding back its own champions in the name of regulation.