The ECB curbed Revolut's 'self-guided missiles.'

      Last year, the European Central Bank discreetly took measures to curb Revolut, limiting Europe's most valuable fintech from introducing new products throughout the European Economic Area due to concerns regarding the speed of its approval processes, as reported by the Financial Times on Wednesday. This intervention had not been previously revealed.

      The ECB halted the release of new EEA products by Revolut’s European division last summer until the company addressed "deficiencies" in its approval procedures, according to those familiar with the situation. Revolut’s operations in Europe, which are overseen by the ECB and the Bank of Lithuania, were notified in July 2025.

      The regulator's actions went further than just a halt. They mandated an independent review of Revolut’s risk, compliance, and legal functions, instructed the company to enhance the staffing, skills, and independence of its product approval teams, and required future product launches to receive approval from internal experts as well as a board evaluation regarding their effects on group capital and liquidity.

      Outside the EEA, the restrictions were even stricter: prohibiting acquisitions and new customer onboarding.

      A check on the ‘self-guided missiles’

      The latest developments from the EU tech sector, a narrative from our wise founder Boris, and some questionable AI art. It's free, delivered weekly to your inbox. Sign up now! The limitation impacts Revolut’s fundamental approach. CEO Nik Storonsky has encouraged employees to act like “self-guided missiles,” capable of deploying products with minimal oversight. “They push the button and they achieve the goals on their own,” he stated during a podcast in December 2024. This agility has led to a rapidly expanding array of services and a valuation surpassing that of most European banks in just over a decade.

      The extent to which these restrictions still affect the company remains uncertain. Since then, Revolut has introduced mortgages, teen accounts, and branches across Europe, suggesting that the constraints have loosened. “We maintain an ongoing and constructive dialogue with our regulators, including the European Central Bank,” a spokesperson for Revolut stated, mentioning that the company “regularly enhances” its controls.

      The ECB declined to comment. The regulator had already expressed concerns by raising the Pillar 2 capital requirement for Revolut’s Lithuanian branch to 4.5 percent for 2026, the highest of all the banks under its direct supervision.

      The timing is particularly sensitive. Revolut is currently engaged in a share sale that values the company at $115 billion, an increase from $75 billion last year, potentially positioning it as Europe’s seventh-largest bank by market capitalization, ahead of Barclays and BNP Paribas. It has informed investors of its aim to eventually reach a valuation of $200 billion, a target that could enable Storonsky, who owns nearly 30 percent, to gain an additional 10 percent.

      The company expanded its customer base to 75 million last year and increased pre-tax profit by 57 percent to £1.7 billion on £4.5 billion in revenue.

      Revolut is not without its challenges. In April, Italy imposed an €11.5 million fine on the company for misleading investment product information, a decision it is appealing, and it has recently secured a US bank charter and a full UK license after years of regulatory disputes. This situation also underscores a persistent concern: that Europe’s cautious approach may hinder the champions it seeks to cultivate.

      The fundamental question is whether a company operating like a tech startup can sustain its rapid pace while being regulated like a major bank pursuing a $200 billion listing.