Revolut exec tasked with improving governance exits after just a year

Richard Davies, who was appointed Revolut's banking CEO in July last year, is joining startup lender Allica Bank.

The banking executive drafted in to bolster Revolut's governance amid criticism of its company culture is exiting the fintech after just a year in the role.

Richard Davies, who was appointed Revolut’s banking CEO in July last year, is leaving next month to join the startup lender Allica Bank as its CEO.

Davies is a banking veteran, who has held a number of senior roles including the first CEO of fintech OakNorth Bank, and senior roles with HSBC and TSB.

Davies is not completely severing ties with Revolut and will serve as a non-executive director of its international holding company and adviser to Revolut’s European business.

During his time at Revolut, Davies set up leadership teams in Ireland, US, Australia and Singapore; and played a crucial role in launching the fintech across Europe.

Davies was recruited by Revolut, which in February became Europe's most valuable fintech following a £500m funding round, as part of an effort to improve its governance, following criticism of its internal working practices and compliance. 

Criticism included setting unachievable targets to staff, a high staff turnover, and asking potential employees to carry out unpaid work as part of their job application, which was revealed in Wired magazine in 2019.

Revolut says it has now eradicated possible recruits carrying out unpaid work.

The exit of Davies, who according to the FT is leaving Revolut on good terms, is the latest in a string of executive departures from Revolut.

In April this year, it was revealed Revolut has lost eight top employees since the middle of March this year, although the departures were not Covid-19 related.

At Allica, a business lender primarily aimed at SMEs which is backed by Warwick Capital Partners, Davies replaces Mark Stephens, who has retired.

Davies said: “The world as we know it is changing fast and it’s the companies who can blend innovative technology with real human expertise, who will thrive and add real value for their customers."

 “It is for that reason I am delighted to be joining Allica Bank. I strongly believe we have the talent, experience and commitment to support British businesses through these uncertain times."

 “Now, perhaps more than ever, is when financial institutions need to step up and be counted on behalf of the customers that need them."

"In my career I have worked for some of the largest established banks and fastest growing challengers, I am excited to be continuing in that vein as I move from one of the most disruptive fintechs, to the bank that I believe can transform business banking in the UK.”

John Maltby, chairman, Allica Bank, said: “As a respected leader and innovator of business banking and fintech, Richard’s appointment is testament to Allica Bank’s progress, since securing our banking licence in September 2019.”

 “2020 has certainly been a challenging year for British businesses, and everyone at Allica Bank has worked hard to support companies through these turbulent times."

"Since our launch, and throughout the Covid-19 period, Allica has continued to provide solutions at pace, resulting in a strong pipeline across the length and breadth of the country."