In a strategic move poised to strengthen its leadership and regulatory navigation, European fintech giant Revolut has named Francesca Carlesi as its new UK CEO. With a solid background spanning over 15 years in finance, Carlesi’s appointment marks a significant step in Revolut’s persistent effort to secure a UK banking license—a process filled with challenges and scrutiny by regulators.
Francesca Carlesi: A Storied Career in Finance and Fintech
- Extensive Experience: Carlesi’s deep-rooted experience in financial services includes high-profile positions at Barclays, and Deutsche Bank, and the founding of digital mortgage lender Molo Finance.
- Industry Expertise: Her roles have ranged from chief of staff and global head of regulatory affairs at Deutsche Bank to head of strategy business planning at Barclays, equipping her with the knowledge to navigate the complex financial regulatory landscape.
- Leadership Acumen: As the co-founder and CEO of the UK’s first fully digital mortgage lender, Carlesi has demonstrated the visionary leadership needed to innovate in the competitive fintech sector.
Revolut’s Journey Towards a Banking License
Revolut’s quest for a banking license is a narrative of persistence amid regulatory rigor. Appointed as the new helmsman of the UK operations, Carlesi’s leadership arrives at a time when the company is eager to expand its services to include lending products and insure customer deposits, intensifying its market presence.
- License Application: Initiated in January 2021, the licensing process has been met with pushback over internal working culture and structural concerns.
- Regulatory Hurdles: Revolut’s substantial customer base and operational robustness have attracted regulator attention, delaying the licensing journey.
- External Challenges: Wider banking industry turmoil and economic headwinds have contributed to a more cautious approach from regulators, further protracting the process.
- Licensing Progress: Despite the setbacks, Revolut has cleared some obstacles, such as restructuring its shareholding agreement with primary backer SoftBank, and remains committed to attaining the license.
The Significance of a UK Banking License for Revolut
The coveted banking license is more than a regulatory milestone for Revolut; it’s a gateway to transformative growth. With a license, Revolut can broaden its offerings to include mortgages, personal loans, and credit cards. Moreover, it would mark a pivot from a fintech service to a fully-fledged banking institution, complete with customer deposit insurance of up to £85,000—bolstering consumer trust and financial stability.
- Enhanced Services: A banking license would enable Revolut to earn interest income, especially beneficial in an era of high interest rates.
- Increased Customer Base: The assurance of insured deposits could attract a more stable and loyal user base, critical for long-term growth.
- Financial Health: The transition to a licensed bank is expected to address and improve upon past criticisms regarding the company’s internal controls and accounting practices.
Looking Ahead: Revolut’s Strategic Focus
Under Carlesi’s stewardship, Revolut’s UK operations are poised to not only challenge incumbent banks but also redefine digital banking’s future. Her proven track record in founding a successful fintech and navigating regulatory affairs at a global bank equips her with the tools necessary for this pivotal role.
Revolut UK Chairman Richard Holmes reflects optimism about Carlesi’s appointment, citing her fintech foundation and industry tenure as vital for challenging traditional banking models. With her at the helm, Revolut seeks to overcome the rigorous regulatory challenges that have characterized its licensing odyssey.
The company, featured in CNBC and Statista’s list of the top 200 global fintech firms, has already secured more than 70 licenses across different financial services domains, and received an EU banking license from the Bank of Lithuania in 2021, marking its commitment to rigorous compliance and international expansion.
While the journey ahead may be complex, Carlesi’s leadership represents a renewed vigor within Revolut’s ranks—aiming to close the gap between fintech innovation and traditional banking’s trust and reliability. As the financial world watches, Revolut’s strides under Carlesi’s guidance will be a testament to the transformative potential of fintech in the modern banking era.
