Revolut
Key Data
- Trading Name: Revolut
- Legal Entities: Revolut Ltd, Revolut Trading Ltd, Revolut Bank UAB, and other entities
- Activities: Banking, payment, and investment services, including crypto
- Authorization: Banking licenses for 30 jurisdictions, including the UK
- Location: HQ in London
- Key People: Nikolay “Nik” Storonsky and Vlad Yatsenko (founders)
- Related news: Revolut
- Latest update: Aug 9, 2024
Financial Standing
Revolut showed impressive results for 2023. Its Revolut customer base grew from 26.2 million to 38.0 million at year-end, a nearly 45% increase. Revenue increased from £0.92 billion in 2022 to £1.80 billion, marking a 95% increase. Similarly, profit before tax grew to £438 million in 2023, and net profit grew to £344 million.
This impressive financial achievement is attributed to rising interest rates and a strategic expansion plan.
Offering
Revolut offers a wide range of banking and financial services through its mobile app and platform. Here’s an overview of their current offerings:
Account Types
- Standard Account:
- Free account with a virtual debit card.
- Unlimited free domestic withdrawals.
- 3 free withdrawals per month abroad.
- Contactless and mobile payments.
- Plus Account:
- £3/month.
- Includes all Standard features.
- Disposable virtual cards for enhanced security.
- 5 free withdrawals per month abroad.
- Premium Account:
- £6.99/month.
- Includes all Plus features.
- Unlimited free withdrawals abroad.
- Travel insurance and other perks.
- Metal Account:
- £12.99/month.
- Includes all Premium features.
- Exclusive metal debit card.
- Higher interest rates on savings.
- Additional benefits like airport lounge access.
Investment Products
- Stocks and ETFs: Revolut allows users to invest in stocks and ETFs with no commission fees.
- Cryptocurrencies: Users can buy, sell and hold popular cryptocurrencies within the app.
Savings Options
- Savings Vaults: Earn interest on savings with competitive rates based on account type.
Additional Features
- Budgeting Tools: Advanced budgeting features to help users manage their finances.
- Subscription Management: Easily track and manage subscriptions in the app.
- Business Banking: Tailored banking solutions for businesses, including corporate cards and expense management.
Revolut aims to provide a comprehensive financial platform that caters to both personal and business banking needs, offering innovative features and competitive pricing across its account tiers.
Customer Review
- Trustpilot: 4,1 Stars with a corresponding “Great” trust level from more than 157,000 reviews (Aug 9, 2024)
- Google/ Apple 4.5/5 and 4.9/5 Regulation
Compliance Check
In July 2024, Revolut received the banking license it applied for in the UK in 2021. Thus, the fintech is regulated by several authorities in the UK:
- Prudential Regulation Authority (PRA): Revolut received its UK banking license from the PRA in July 2024, which is responsible for overseeing the UK banking sector.
- Financial Conduct Authority (FCA): The FCA regulates Revolut along with the PRA and oversees conduct in retail and wholesale financial markets.
- Financial Services Compensation Scheme (FSCS): Revolut is a member of the FSCS, which protects eligible deposits up to £85,000 per person
Revolut holds banking licenses in multiple jurisdictions, which requires the company to navigate various regulatory frameworks. In addition to its recent UK banking license, Revolut obtained its first banking license in Lithuania in 2018, allowing it to operate as a bank in 18 EU countries. Furthermore, it has also secured a banking license in Mexico.
This multi-jurisdictional presence means that Revolut must comply with the regulations set forth by different authorities, including the European Central Bank and local regulators in each country where it operates. The varying regulatory regimes can present challenges, as Revolut needs to ensure adherence to diverse compliance requirements and operational standards across these markets.
Compliance Issues
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Fraud Reports:
- Revolut was named in nearly 10,000 fraud reports filed with Action Fraud in a single financial year, surpassing figures for major high-street banks like Barclays.
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Audit Concerns:
- The Financial Reporting Council (FRC) criticized Revolut’s audit quality, highlighting an “unacceptably high” risk of errors in the company’s financial statements.
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Compliance Team Turnover:
- High-profile resignations within Revolut’s compliance and risk departments, including the UK Chief Risk Officer and the UK Head of Regulatory Compliance, have raised concerns about the company’s internal controls.
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Regulatory Challenges:
- Delays in obtaining a UK banking license due to regulatory concerns have subjected Revolut to increased scrutiny from UK financial regulators.
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Reputation and Trust Issues:
- Public and regulatory criticism have affected stakeholder confidence, prompting Revolut to enhance its anti-fraud measures and compliance frameworks.
Rating Conclusion
Revolut has demonstrated significant progress, securing regulatory licenses across numerous jurisdictions. In light of these achievements, we are pleased to include Revolut on our Green Compliance list.
Customer feedback further reinforces this positive assessment, with user reviews indicating high satisfaction levels. The Revolut app consistently receives top ratings on both Apple and Google platforms. Coupled with its robust financial standing, these factors lead us to place Revolut on our Green Risk list, reflecting its strong financial stability and minimal risk profile.
