Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has finally come out of the regulatory tunnel with a license in hand.
As expected, Revolut applied for a license through the Bank of Lithuania and is leveraging passporting rules to operate in other European countries. Users will see some changes over the coming months.
First, the company expects to roll out new features in the U.K., France, Germany and Poland. Right now, Revolut is more like an e-wallet that you can top up in many different ways. Users in those countries will get a true current account and a non-prepaid debit card in a few months.
After transferring your money to Revolut’s own infrastructure, funds will be covered up to €100,000 under the European Deposit Insurance Scheme. It should convince more users to switch to Revolut for their salaries and big sums of money.
Eventually, the startup expects to be able to offer overdrafts and loans. All fintech startups end up offering credit at some point as it’s a good way to generate revenue.
There are currently 8,000 to 10,000 people opening a Revolut account per day. Users generate $4 billion in monthly transaction volume.
It’s going to be interesting to see if current accounts will affect growth. It’s currently quite easy to open a Revolut account as users don’t need to go through a lot of KYC processes. This is going to change once the startup starts opening current accounts.