Why Revolut’s Auditor Change from BDO to EY Matters
Revolut’s auditor change signals a strategic shift as the £48.6bn fintech giant prepares for full UK banking operations. The company has appointed EY to replace BDO as its auditor, following a strained relationship over revenue verification issues.
The UK banking licence holder is racing to launch regulated banking services in 2025, but its previous auditor BDO raised “health warnings” about £477m in revenues. This auditor switch comes at a crucial time when regulatory scrutiny is at its peak for Revolut’s banking licence mobilisation.
Here’s why this auditor change could accelerate Revolut’s journey to becoming a fully regulated UK bank.
Revolut BDO Relationship Issues: Revenue Verification Problems
Let’s be honest – breaking up with your auditor rarely happens for good reasons.
BDO didn’t just quietly exit. In March 2023, they basically said “we can’t verify these numbers” about Revolut’s 2021 revenues. The auditor flagged concerns about the “completeness and occurrence” of £477m in revenue, warning it “may be materially misstated.”
The Internal Controls Problem
The root issue? Revolut’s internal IT controls weren’t up to scratch. For a company processing millions of transactions daily, that’s like having a leaky bucket when you’re trying to measure water flow.
BDO stuck around for seven years and collected £5.3m in audit fees for 2024 alone. But when your auditor can’t sign off your accounts without a health warning, it’s time for a change.
EY Appointment: Big Four Auditor for Revolut Banking Licence
Enter EY – one of the Big Four accounting giants. This isn’t just an upgrade in prestige; it’s strategic positioning.
Revolut’s CFO Victor Stinga kept things diplomatically vague, thanking BDO for their “valued partnership” through “significant transformation and growth.” Translation: thanks for the memories, but we need someone who can handle our banking ambitions.
EY will audit Revolut’s books through December 2026, covering the crucial period as the company transitions from fintech disruptor to regulated bank.
Revolut UK Banking Licence Timeline: Three Years of Delays
Getting a UK banking licence requires extensive regulatory approval. Revolut’s banking licence journey demonstrates the complexity of fintech banking regulation.
Revolut Banking Licence Approval Timeline
- 2021-2024: Three-year UK banking licence application process
- July 2024: PRA banking licence approval granted
- Late 2024: Revolut misses 12-month mobilisation deadline
Revolut is the first fintech to enter banking licence mobilisation with over 500,000 customers. The company describes this as “the largest and most complex banking mobilisation ever undertaken in the UK.”
Political Drama Bonus Round
The delays even triggered a spat between Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey. Reeves wanted to arrange a meeting to speed things up; Bailey blocked it, insisting regulation stays independent from political meddling.
Classic British institutional drama, but with fintech stakes.
Revolut 2025 Banking Launch: What the EY Auditor Change Means
Despite the auditor change and regulatory challenges, Revolut remains committed to launching its UK banking services in 2025. The EY appointment represents a strategic move to strengthen regulatory compliance for its banking licence requirements.
The Big Four auditor brings enhanced credibility and robust systems needed to satisfy UK banking regulators. For Revolut’s 45+ million global users, this auditor change could accelerate the delivery of enhanced banking products including deposit protection and lending services.
FAQ
Q1: Why did Revolut change auditors from BDO to EY?
A: BDO couldn’t verify Revolut’s 2021 revenues due to internal control issues and raised concerns about £477m in revenue figures. The relationship became strained after BDO issued health warnings on Revolut’s financial accounts.
Q2: When will Revolut launch UK banking services?
A: Revolut aims to launch fully regulated UK banking services in 2025, though the company has missed its initial 12-month banking licence mobilisation deadline after receiving PRA approval in July 2024.
Q3: What caused Revolut’s UK banking licence delays?
A: Revolut spent three years seeking regulatory approval for its UK banking licence, finally receiving it in July 2024. The delays created political friction between the Chancellor and Bank of England Governor over regulatory independence.
Q4: How much did Revolut’s auditor change cost?
A: Revolut paid BDO £5.3m in audit fees for 2024. EY’s fees for auditing through December 2026 haven’t been disclosed yet.
Q5: What makes Revolut’s banking transition unique?
A: Revolut is the first company to enter UK banking licence mobilisation with over 500,000 existing customers, making it the “largest and most complex banking mobilisation ever undertaken in the UK.”
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Effective Date: 15th July 2025
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