Revolut’s U.K. CEO Fears for London’s Position as FinTech Hub

Francesca Carlesi, the newly appointed CEO of Revolut in the U.K., is determined to ensure that London maintains its status as a leading FinTech hub amidst growing competition from cities like Paris and New York.

In an interview with Bloomberg News on Wednesday, Carlesi emphasised the importance of preserving London’s appeal to startups, warning of the risk of losing ground to rival cities. To bolster London’s position, she recently joined Innovate Finance’s “Unicorn Council,” a coalition of major U.K. FinTech firms advocating for startup-friendly government policies.

While acknowledging a shift in London’s FinTech landscape over the past few years, Carlesi remains optimistic about the city’s potential to host Revolut’s eventual initial public offering (IPO). She emphasised the U.K. as Revolut’s home market, with many investors based there, suggesting that listing in the U.K. aligns with the company’s interests.

Despite the prospect of an IPO, Carlesi emphasised that Revolut’s immediate focus lies elsewhere. She aims to address issues related to accounts, controls management, and organisational culture as the company continues its pursuit of a banking license in the U.K., now entering its third year.

Carlesi, who joined Revolut from digital mortgage lender Molo, brings a wealth of experience from her tenure at prominent financial institutions like Deutsche Bank and Barclays, as well as her background in consulting and investment.

The U.K. has faced criticism for potentially hindering FinTech growth, particularly post-Brexit. In response, initiatives like the FinTech Growth Fund have been launched to support the sector, aiming to invest in a range of companies, including challenger banks, payment tech firms, and regulatory technology providers.

Amidst increased regulatory scrutiny, partnerships between traditional banks and FinTechs have become increasingly prevalent. This collaborative approach leverages the strengths of both parties, with banks offering established infrastructure and FinTechs contributing innovative technology and user experiences. However, evolving regulatory landscapes may pose challenges for intermediaries bridging these partnerships, prompting a need for adaptation and compliance.