Three years after obtaining its licence in Lithuania, the British fintech is operating its banking services in ten countries, including Luxembourg, where it has 30,000 customers. This means that, for the time being, bank deposits, which until now have been guaranteed by partner banks in ring-fenced accounts, will be guaranteed directly by the firm.
According to a survey conducted by Revolut, almost 50% of the fintech's customers would deposit their salary on Revolut and spend more via theapp if their deposits were insured, which explains this first notable change.
“Revolut is now the fastest growing fintech in Europe because we put the customer at the heart of everything we do. Our product design is second to none, we have no hidden fees and we are constantly developing innovative new financial products,” said Joe Heneghan, CEO of Revolut Bank. “The launch of the bank in Luxembourg will provide a greater level of security and confidence to our customers, and will allow us to launch a host of new products and services in the near future.”
In addition to guaranteed deposits, Revolut will soon be offering traditional credit cards and even consumer loans.
“Through the Revolut app,” a press release by the company says, “customers can see exactly how much they spend each month in different categories, such as on dining out or transportation, set monthly budgets for those categories and manage their subscription fees, send and request money from friends instantly, round up their card payments and save their loose change. Revolut customers can also spend and transfer money worldwide with no hidden fees, store and exchange 29 currencies within the app, and send money to friends and family instantly around the world.”
It should be noted that during Revolut’s expansion in Europe it has received criticism, notably from local banks in Portugal who claim it has been held to a different standard than other banking institutions. In the case of Portugal, Revolut's guarantee of deposits is not associated with the Portuguese Deposit Guarantee Fund but are made with the parent company in Lithuania instead.
This story was first published in French on Paperjam. It has been translated and edited for Delano.