Revolut customers say e-money firm failed them after scam

In July this year, the UK banking regulator granted Revolut a provisional banking license and the company is now on its way to becoming a fully-fledged bank.

This means that if Revolut goes bust, customers’ deposits would be guaranteed up to £85,000 per person.

Until then, it will continue to operate as an e-money institution or e-money company.

However, becoming a bank means it can lend to its customers via credit cards, overdrafts and mortgages.

“This means their customers have more at stake if they are targeted by a fraudster,” says Rob Lilley-Jones.

“I think there could be a political element to Revolut’s licensing because it reaches a size that rivals the big banks,” says Frances Coppola, a financial journalist and expert on banking risk and regulation.

“I don’t think any government wants something of this size to play fast and loose with the rules.” However, she adds: “Given the number of complaints, I guess you could ask whether Revolut should be licensed.”

According to the Treasury, the decision on whether to grant Revolut a banking license rests with independent regulators. They declined to comment to Panorama.

Revolut says it adheres to the same regulatory standards as any major bank, and we’re sorry to hear of cases where customers have been targeted by criminals.

It says it has reduced fraud by 20% in the past year but admits “there is always more work to do”.