Revolut, the digital banking pioneer, has taken a significant step towards its goal of becoming the ‘Amazon of Banking’ by securing a European banking licence.
The London-based FinTech has outlined ambitious plans to introduce full current accounts, consumer lending, and commission-free stock trading. Initially, the company will implement the licence in smaller European countries, with eventual plans to extend to key markets including the UK, France, Germany, and Poland.
CEO Nik Storonsky, who co-founded Revolut with Vlad Yatsenko in July 2015, stated, ‘With the banking licence now secured, commission-free stock trading progressing well and five new international markets at final stages of launch, we are living up to our reputation as the ‘Amazon of Banking’.’
Revolut first attracted customers by allowing them to spend and transfer money abroad at the real exchange rate. The company has since gained over three million users and raised approximately $340 million in investments. In December 2017, Revolut expanded its offerings to include cryptocurrency trading within its app, and announced plans for commission-free stock trading across the UK and Europe in early 2019.
The new banking licence allows customers to deposit their salaries, which will be protected up to €100,000 under the European Deposit Insurance Scheme. Revolut will also begin offering overdrafts, personal, and business loans at rates competitive with traditional high street lenders. Storonsky emphasised, ‘Our vision is simple: one app with tens of millions of users, where you can manage every aspect of your financial life with the best value and technology.’ Apart from international expansion and a commission-free trading platform, a key focus for the company is breaking into lending.
Revolut’s goal is to enable retail and business customers to apply for loans within two minutes via the app and receive the funds almost instantly. Storonsky added, ‘We’ll remove the bureaucratic process and come in cheaper than traditional lenders.’
Over the past year, Revolut has experienced substantial growth, reporting the opening of 8,000 to 10,000 new current accounts daily. The company has also announced plans to expand beyond Europe, with markets such as the United States, Canada, Singapore, Japan, Australia, and New Zealand anticipated to launch in early 2019.
Revolut’s acquisition of a European banking licence marks a pivotal moment in its journey towards becoming a comprehensive financial service provider. The company’s forward-thinking approach and rapid growth indicate its potential to significantly disrupt traditional banking models.