The article says:
“There is not any doubt over the completeness of the balance sheet, which, in turn, logically means that total revenue is also correct,” he[0] said.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the completeness and occurrence of certain revenues for the year ended 31 December 2021. We have concluded that where the other information refers to revenue or related balances these may be materially misstated for the same reason.
[0] Salovaara, the CFO.
[1] https://assets.revolut.com/pdf/Revolut_Ltd_YE_2021_Annual%20... which is linked on https://www.revolut.com/financial-statements/
From what I have read in the last years of how the CEO and the company in general operate I would not be surprised if there will be a criminal investigation. This isn't the first time Revolut has had issues.
This is really quite very very bad. I remember someone on twitter a while ago pointing out they keep missing the deadline for publishing their accounts. Like one of the things I would be quite keen to do if I were applying for a banking license would be to make sure I'm getting the paperwork right. Given that Revolut have raiesd enormous amounts of cash, I'd imagine they're pretty keen to IPO, and to do that they need a UK banking license - and there's just no way that's happening any time soon given what's going on. This could really cause them trouble and in the mean time the equity of any of the employees has probably already gone to zero because of the massive valuations they've raised at.
So did “fintech” just mean “shitty bank” all along, same way that crypto was just shitty penny stocks.
Punchline: “IT systems weren’t designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year.”
I would not be surprised if this is another Wirecard/FTX brewing, and I will also not be surprised if it's all 100% legit.
CFO's comments to The Guardian in December 2022 (the article also mentions the auditor's concerns)[0]:
> Mikko Salovaara, its chief financial officer, told the Guardian in an interview that the company was on the brink of getting a banking licence from City regulators: “I think we’re at the very last stages. Really at the finish line.” Salovaara said the UK licence was a step towards achieving Revolut’s aim of becoming a “truly global bank”. It would allow the company to offer “an increasing set of services to our customers, particularly credit.”
Sounds like another Wirecard. There's even the cliched startup quote "we want to be the Amazon of banking". WC wanted to be the Paypal of Europe. Amazing how far you can get before you've earned a single cent of profit!
[0] https://www.theguardian.com/business/2023/mar/01/uk-fintech-...
That is pretty bad, it sounds like a criminal investigation should start immediately.
rate hike will wipe out many companies
it will blow up like this in very different places, wiping those who lived by the grace of free money
Oh boy
The Revolut UK banking chief executive also just quit 'for unrelated reasons' after texting a death threat to a customer: https://www.telegraph.co.uk/business/2023/05/13/revolut-exec...