- Revolut is a London-based fintech startup
- It obtained the coveted European banking license from the Bank of Lithuania
- Plans to become the “Amazon of Banking”
According to an article published by TechCrunch, on December 13, 2018, crypto-friendly fintech startup Revolut has bagged the coveted European banking license. After obtaining this license, Revolut is now officially a bank.
Revolut Working towards becoming the “Amazon of Banking”
Aiming to become the “Amazon of banking,” Revolut offers an in-built cryptocurrency exchange in their official app. The feature allows users to trade and store major cryptocurrencies like bitcoin, litecoin, ether, among others.
Although the UK-based unicorn expected to obtain the banking license by early 2018, the complex regulatory chasm in Europe deferred their target by a considerable time.
Notably, Revolut applied for the banking license through the Bank of Lithuania. The bank is also contemplating expansion to other European countries through the banking passporting rules.
Short-term plans of Revolut include rolling out new features in the U.K., Germany, France, and Poland. It is expected that post-rollout, users in the aforementioned countries will have the facility to get a true current account, along with a non-prepaid debit card.
Now that Revolut has bagged the European banking license, it is subjected to the European Deposit Insurance Scheme. This entails that user’s funds up to 100,000 Euros will be covered by Revolut’s own financial infrastructure. The fintech startup is hopeful that in the future it will be able to offer services like overdrafts and loans. The latter especially help generate a healthy source of revenue for banks.
Per sources close to the matter, 8000-10,000 people open bank accounts with Revolut every day. Further, monthly transaction volume generated by user’s activities comes somewhere close to $4 billion.
Fintech Startups on the Rise
It will be interesting to see whether the introduction of current accounts will have any impact on these figures. Current accounts, unlike savings accounts, involve more stringent rules and regulations to adhere to. While the existing KYC process at Revolut bank is not too complex, one might expect it to change in the near future.
Nikolay Storonsky shared his thoughts on the developing. He said:
“With the banking license now secured, commission-free stock trading progressing well and five new international markets at the final stages of launch, we are living up to our reputation as the ‘Amazon of banking.’ 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.”
The recent surge in fintech startups can be seen as a welcome movement. BlockchainReporter reported on September 8, 2018, how the zero-commission trading app Robinhood is mulling launching its IPO in the near future.