Revolut to hire former Goldman Sachs powerbroker

By Roger Baird on 8th July 2019

Challenger Banks

The London-based digital bank is poised to bring Michael Sherwood to its board as it comes under pressure to strengthen its governance amid rapid growth.

 Revolut to hire former Goldman Sachs powerbroker
Image source: Company supplied

Digital bank Revolut is poised to appoint the former Goldman Sachs Europe boss Michael Sherwood as the digital bank continues to beef up its board.

Veteran Sherwood, who left the giant US investment bank two years ago has been lined up to take with a non-executive directorship at as the app-only bank bids to  boost its governance after adding millions of customers.

The appointment of Sherwood, who spent three decades at Goldman Sachs, is expected to be formally announced this week, reported Sky News. 

Sherwood, who left the bank as co-chief executive officer of Goldman Sachs International,

was regarded as one of the City’s most powerful figures.

 

Rapid growth

He left the US business just months after becoming embroiled in an investigation into the collapse of stores chain Bhs. He had previously advised former Bhs owner Sir Philip Green but he denied his departure was linked to the fiasco.

Last week, Revolut poached TSB's commercial banking director, Richard Davies, as its chief operating officer, as the digital bank bids to improve its customer service after adding millions of customers.

Davies has worked in senior positions at HSBC and Barclays and also spent nine months as chief executive of profitable small business challenger bank OakNorth, leaving in 2014.

Revolut, which has a Lithuanian banking license, is one of the biggest names among European fintechs. Since its launch in 2015, the startup has attracted five million customers and raised more than $336m in funding, boasting a valuation of $1.7bn. 

 

Questions from regulators

However, the bank founded by former Credit Suisse trader Nik Storonsky, and former Deutsche Bank systems engineer Vlad Yatsenko, has come under criticism that its rapid growth has led to lax controls.

This year it has faced questions from regulators over its money-laundering controls, recorded the highest number of customer complaints to the Financial Ombudsman Service for a digital bank, and taken pot shots from former employees about a toxic work atmosphere as its drives for growth.

Revolut refused to comment.