So did “fintech” just mean “shitty bank” all along, same way that crypto was just shitty penny stocks.
Revolut CFO quits after auditor BDO warning
21–30 of 78 posts
Re: Revolut CFO quits after auditor BDO warning
#22The 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...
This is so hilariously bizarre. Why does a customer have a bank executive's personal number? Why was the account frozen? Who did the exec think he was texting? And who was he going to be waiting for armed? I feel invested at this point, like I've watched a movie that just cut off in the middle...
Why did the executive have customer's phone number?
Re: Revolut CFO quits after auditor BDO warning
#23CFO'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 becomi…
There’s a huge leap between fucking up your accounting systems and doing outright fraud. This isn’t even close to what WC was doing, at least from the available information.
If you're providing financial services in a heaivily regulated industry, it's not that big of a leap. The company has a pending application for a UK banking license for the past 28 months; the turnaround time for that in the UK is 12 months. Yet even now, they have filed their accounts several months late, and without a clean bill of health from the auditor.
The CFO of all people should have advised withdrawal of their application until internal controls were sorted. That they're resigning instead doesn't bode well.
From the FT, their UK operations chief departed as well: https://www.ft.com/content/f27f6b80-d32d-4913-991d-c512f6e90...
Re: Revolut CFO quits after auditor BDO warning
#24Earlier quoted context omitted.
This is so hilariously bizarre. Why does a customer have a bank executive's personal number? Why was the account frozen? Who did the exec think he was texting? And who was he going to be waiting for armed? I feel invested at this point, like I've watched a movie that just cut off in the middle...
Why did the executive have customer's phone number?
The article seemed to imply the customer had been texting complaints directly to the executive, not that the executive just cold texted a customer a weird threat.
Re: Revolut CFO quits after auditor BDO warning
#25Earlier quoted context omitted.
There’s a huge leap between fucking up your accounting systems and doing outright fraud. This isn’t even close to what WC was doing, at least from the available information.
If you're providing financial services in a heaivily regulated industry, it's not that big of a leap. The company has a pending application for a UK banking license for the past 28 months; the turnaround time for that in the UK is 12 months. Yet even now, they have filed their accounts several months late, and without a clean bill of health from the auditor. The CFO of all people should have advised withdrawal of the…
It is also worth pointing out the original article also accompanied an implicit threat to take their company to the US if they weren't given a banking licence immediately.
The stuff with the accounts already existed, apparently the regulators found these issues when examining their suitability for the licence (I have read from sources online that there is a very significant issue with revenue recognition, as in a percentage of revenue significantly above 50% couldn't be matched in their systems), but the resignations came after they went to the media and tried to bounce the BoE into giving them a licence (spoiler: what the CFO is quoted as saying it is total bollocks, they aren't close to getting a licence).
The media furore in the UK from execs about insufficient levels of executive pay unfortunately has created the space for opportunism like this.
Re: Revolut CFO quits after auditor BDO warning
#26Earlier quoted context omitted.
For what crime?
Failing an audit doesn’t mean there is crime. But it is like a smoke alarm going off. It doesn’t mean there is a fire but there could be. This company is so big that it should have a mature infrastructure for this type of thing. It is quite strange and thus suspicious that it is running its business is a haphazard way that it can not be effectively audited.
What does it mean to be "effectively audited"? Is my spreadsheet missing a pivot table?
Let's just remember that most bureaucracy exists so that only those who persevere can make it to the other side. And even then if you bother the wrong people there's more bureaucracy to harass you with.
Re: Revolut CFO quits after auditor BDO warning
#27Earlier quoted context omitted.
There’s a huge leap between fucking up your accounting systems and doing outright fraud. This isn’t even close to what WC was doing, at least from the available information.
If you're providing financial services in a heaivily regulated industry, it's not that big of a leap. The company has a pending application for a UK banking license for the past 28 months; the turnaround time for that in the UK is 12 months. Yet even now, they have filed their accounts several months late, and without a clean bill of health from the auditor. The CFO of all people should have advised withdrawal of the…
I don’t know if average turnaround time applies here, because Revolut is getting a license on top of an already huge business.
But again, all of what you said indicates that Revolut has fucked up. But it doesn’t mean they are doing WireCard levels of fraud, or any fraud at all.
Re: Revolut CFO quits after auditor BDO warning
#28rate 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
For all its sins, I don't think that's the case of Revolut.
Re: Revolut CFO quits after auditor BDO warning
#29So did “fintech” just mean “shitty bank” all along, same way that crypto was just shitty penny stocks.
Revolut has had a fee questionable moments already, this does not seem to have been the case for other European fintech operations (wise, klarna, n26 etc).
So yeah, I think a lot of fintech is not particularly good, but I don't think we can generalize to the level of the crypto boom.
Re: Revolut CFO quits after auditor BDO warning
#30The 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...
> He has taken up a new executive role at telecoms business Lycamobile.
Unbelievable. It’s impossible for people in this caste to fail.