Regulator steps up scrutiny of fintech banks

Regulator steps up scrutiny of fintech banks

Applications to become the next Monzo or Revolut are falling under greater scrutiny, as regulators act on concerns about risk management.

The Prudential Regulation Authority (PRA) only approved four applications for banking licences in the 12 months to the end of February, down from 14 in the previous year. However the number of applications remained largely flat, dropping from 11 to 10.

The fall in approvals suggests that the PRA is taking longer to approve new applicants for banking licences than in the past, according to financial services consultancy fscom.