Revolut has lost its UK banking chief executive and group chief financial officer, the latest departures from the London-based fintech whose culture has attracted scrutiny from regulators even as it seeks a banking license in its home market.
James Radford, chief executive of Revolut NewCo UK, the entity set to house the UK’s banking licence, left in March, according to his LinkedIn profile and filings with Companies House, the UK’s company register. His departure has not previously been reported.
Separately, Revolut said Thursday that chief financial officer Mikko Salovaara would be leaving the rapidly growing fintech “for personal reasons” after two years on the job.
The company is still awaiting a banking license in its home market 28 months after it first applied for one.
While its application is pending with the Prudential Regulation Authority and Financial Conduct Authority, Revolut has lost many of the senior executives on its UK banking team. It also faced an FCA-mandated review culturewhich executives say has since been improved.
Meanwhile, its BDO auditor warned in March that there was a risk that revenues were “materially incorrect” in its postponed 2021 accounts.
Radford is gone Revolution after three years to become managing director for financial services at UK-based virtual network operator Lycamobile. Prior to joining Revolut, he worked as Managing Director of Check and Credit Clearing Company, which handles check clearing across the UK, as well as Chief Operating Officer at Aldermore Bank.
Richard Holmes, chairman of Revolut UK, confirmed Radford’s departure and said: “We look forward to it [Radford] all the best in his new role at Lycamobile and we look forward to announcing his successor soon.”
Meanwhile, Salovaara said he was “grateful for the opportunity” and was “staying[ed] confident in the future success of the company”.
Salovaara joined the firm as VP of Finance in January 2021 after roles including CFO for China and Asia-Pacific at Kraft Heinz and investor at Elliott Advisors. He was promoted to Group CFO after four months at Revolut.
Revolut, which was valued at $33 billion in a 2021 funding round – a record then for a privately held British tech group – first applied for a UK banking license in January 2021. It received a European banking license from the Bank of Lithuania in December 2021.
A UK banking license would allow it to offer loans and other services to the more than 5.8 million customers it already has in the country. It would also act as a seal of approval to help secure other banking licenses in major markets.
Two months ago, Salovaara, who was not a central figure in the license application, told the FT that approval would come “any day now”. Chief Executive Nik Storonsky said earlier November 2021 which hoped to obtain a banking license in early 2022.
THE typical delivery time for licenses to offer financial services in the UK it is less than a year.
Last week, Storonsky blamed recent banking turmoil for the latest delays to his license, arguing that the cause of the blockage “isn’t really us”.
The FCA and PRA declined to comment. Revolut said it has not commented on regulatory affairs.
Additional reporting by Laura Noonan in London
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