According to Financial Times News, longtime Revolut board member and former Goldman Sachs executive Michael Sherwood claims the fintech now has “Goldman Sachs quality” information systems despite its ongoing struggle to secure a UK banking license since 2021. Sherwood, in his first interview since stepping down as co-head of Goldman Sachs International nine years ago, expressed confidence the license “will come” while acknowledging the company experienced “growing pains,” including 2023 auditor BDO’s warning that 2021 revenues may have been “materially misstated.” The Revolut board member revealed plans to add “one or two more” non-executives to satisfy regulatory demands and confirmed no IPO is expected for “at least” the next two years for the company valued at $75 billion and growing at up to 3 million new customers monthly. This endorsement from a Goldman Sachs veteran raises important questions about Revolut’s regulatory positioning.
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The Goldman Quality Benchmark: What It Really Means
When a former Goldman Sachs international co-head like Michael Sherwood compares a fintech’s systems to his former employer, the statement carries significant weight—but requires careful examination. Goldman Sachs has historically operated some of the most sophisticated risk management and compliance systems in global finance, developed over decades with massive investment. For Revolut to reach this standard would represent an extraordinary achievement for a company that began operations in 2015. However, the comparison likely focuses on specific technical capabilities rather than comprehensive governance maturity. Goldman’s systems evolved through multiple regulatory cycles and crisis periods, something no fintech can replicate in under a decade. The real test will be whether UK regulators view this self-assessment as credible when evaluating Revolut’s banking license application.
The Banking License Stalemate: More Than Just Systems
Sherwood’s comments reveal the complex dance between Revolut and UK regulators that extends far beyond technical system quality. The requirement for “more people with retail banking experience” on Revolut’s board highlights a fundamental tension in fintech regulation: established banks have the experience but poor track records, while innovative fintechs lack traditional banking pedigrees. Regulators face the challenge of approving new entrants without repeating past mistakes from the traditional banking sector. Sherwood’s pointed question—”tell me which retail banks have done a great job”—reflects this regulatory paradox but may underestimate how crucial demonstrated governance experience remains for banking supervisors. The three-year wait for a UK banking license suggests regulators remain unconvinced about Revolut’s operational maturity despite its technical advancements.
Strategic Crossroads: Beyond the Banking License
The delayed banking license creates strategic complications that extend well beyond the UK market. Sherwood’s comments about the US being “a mono-currency environment” and not “a massive driver” signal a pragmatic reassessment of global ambitions. Without a UK banking license serving as a regulatory credibility foundation, international expansion becomes significantly more challenging. The mention of focusing on niche opportunities like remittances to Mexico suggests Revolut may be pivoting toward targeted international segments rather than broad consumer banking expansion. This represents a substantial strategic shift from earlier ambitions to become a global banking disruptor. The two-year IPO timeline further indicates the company recognizes it needs to resolve fundamental regulatory and governance questions before pursuing public markets.
The Fintech Maturation Challenge
Revolut’s situation reflects broader challenges facing the fintech sector as it transitions from rapid growth to sustainable maturity. The “growing pains” Sherwood references—including revenue reporting questions and governance evolution—are common across scaling fintechs. What makes Revolut’s case particularly significant is its scale and valuation, which create heightened regulatory scrutiny and market expectations. The company’s journey illustrates the inevitable tension between disruptive innovation and regulatory compliance that all successful fintechs must eventually navigate. How Revolut resolves these challenges will set important precedents for the entire sector, particularly regarding how regulators balance innovation against stability concerns for systemically important fintech platforms.
The Road Ahead: Realistic Scenarios
Looking forward, Revolut faces several critical milestones beyond the banking license decision. The planned addition of experienced non-executives represents a necessary but potentially challenging governance evolution, as integrating traditional banking expertise with fintech culture often proves difficult. The two-year IPO timeline creates pressure to demonstrate sustainable profitability and resolved regulatory issues, particularly given the company’s $75 billion valuation expectations. Sherwood’s confidence in the banking license approval suggests behind-the-scenes progress, but the extended timeline indicates significant regulatory requirements remain. The ultimate test will be whether Revolut can maintain its growth momentum while addressing the governance and compliance expectations of both regulators and future public market investors.
