The hidden block imposed by the ECB on Revolut is revealed. Specifically, the ECB moved quietly to rein in the activities of the fintech bank, putting a temporary brake on the launch of new products due to serious concerns regarding insufficient security measures. The highly aggressive strategy of its founder, Nik Storonsky, was targeted by regulatory authorities, as he encouraged his staff to operate like "guided missiles," launching digital services at the speed of light.
The backstory
More specifically, according to information from the Financial Times, in the summer of 2025, the ECB temporarily restricted the license of the bank's European division (which is headquartered in the United Kingdom) to launch new products in the European Economic Area until it addressed "shortcomings" in approval processes.
The bank was ordered to conduct a third-party assessment (by an independent expert) of the risk management, compliance, and legal service operations that govern the launch of new products in Europe. The restrictions were even stricter outside the block for Revolut's European arm, preventing it from proceeding with acquisitions or attracting new customers beyond the continent.
Storonsky's "guided missiles"
These restrictions, which had not been previously revealed or reported, posed a threat to the strategy of the Russian-born co-founder and CEO of Revolut, Nik Storonsky, who has praised his staff by describing them as "guided missiles" who are given the freedom to develop and launch products quickly with limited oversight. This strategy helped skyrocket Revolut's valuation above most traditional European banks in just over a decade, offering a rapidly growing range of online financial services, and made Storonsky one of the wealthiest people in the United Kingdom through his 30% stake in the company.
However, this digital "neobank" has at times clashed with regulatory authorities, including those in the United Kingdom, where Storonsky had once mocked officials for being too slow and "stuck in their ways," before a full banking license was finally approved for Revolut in the United Kingdom this year.
Tensions between fintech and regulatory authorities
The ECB's restrictions highlight the tensions between rapidly growing fintechs and their disruptive impact on the traditional banking system, and the regulators tasked with protecting consumers and limiting risks to the wider financial system. There are also long-standing questions regarding Europe's ability to produce top start-up companies compared to the US, with fears that the regulatory environment stifles growth and innovation. Revolut, which started in the United Kingdom nearly a decade ago, has told investors that it eventually aims to list on the stock exchange with a valuation of $200 billion, as previously reported by the FT.
If achieved, it would exceed the market capitalization of most European banks, including UBS and Santander. The ECB's move last year came as Revolut was preparing for a share sale that valued the fintech at $75 billion. The European board of Revolut was informed of the restrictions in July 2025. Its European operations are overseen by the ECB and the Central Bank of Lithuania, which granted Revolut a European banking license in 2018.
Revolut's... internal culture
Storonsky has long shaped Revolut on the model of a technology company and described his highly demanding approach in a podcast hosted by venture capital investor Harry Stebbings in December 2024, where he said that staff face quarterly performance reviews and should behave like "guided missiles." "They press the button and reach the targets on their own," Storonsky stated. As part of the restrictions, the ECB ordered Revolut to review staffing levels, skills, capabilities, and the independence of current approval methods, according to individuals familiar with the matter.
It also ordered Revolut to ensure that future products receive approval from "experts" employed by the company and urged the bank's board to consider how new products will affect the group's capital and liquidity levels. British regulators were once concerned about whether the company had the risk management operations to maintain the pace of its rapid growth, but they granted Revolut a full banking license in the United Kingdom in March, after years of deadlock.
In April, Revolut was fined 11.5 million euros in Italy for providing customers with misleading information regarding fees and terms for its investment products. Storonsky, who renounced his Russian citizenship after Moscow's full-scale invasion of Ukraine, could acquire an additional 10% of the company through a deal with investors if Revolut lists on the stock exchange with a valuation of $200 billion.
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