Finance and fintech powerhouse Revolut is under even more scrutiny following its latest internal audit. Many concerns have been raised over those results. Moreover, the bank was in hot water earlier due to UK regulator scrutiny regarding account auditing.
More Worries For Revolut
New findings by the Financial Reporting Council (FRC) paint a bleak outlook for Revolut and the way it conducts business. More specifically, a recent internal audit of the company shows various issues with Revolut’s way of processing payment and material misstatement. Those are very serious concerns and confirm the bank still has issues to sort out after being operational for seven years.
Revolut is known for its rapid expansion and overall stellar reputation among customers. However, the desire to please customers seems to come at the cost of risk and compliance requirements. That concern is exacerbated by the recent departure of the company’s risk officer, head of regulatory compliance, and money laundering reporting officer. Those roles have yet to be filled back in, a process that seems to take longer than necessary.
In addition, Revolut nears its deadline to file its 2021 accounts and balances. That process needs to be finalized prior to the end of September 2022. While it remains unclear if more discrepancies and issues arise after that filing, there are very severe concerns. Moreover, the back office functions issues need to be resolved ASAP, although it seems unlikely that will happen in time.
Some people may wonder what would happen to Revolut if they didn’t resolve these issues in time. That is the problem for online banks and other fintech disruptors. They may have a very different corporate mindset but must adhere to existing rules and requirements. Failure to do so can have severe consequences for the company and its customers.