Revolut expects the banking licence to be in place by the first half of 2018 and will immediately begin offering deposit and credit services in selected markets; including overdrafts, personal loans and term deposits. The banking licence will also enable Revolut to protect customers funds up to €100,000 under the European Deposit Protection Scheme. This will allow customers to confidently carry higher balances and take advantage of attractive deposit interest rates across multiple currencies.
Revolut has also appointed three non-executive directors with a combined total of 85 years experience in global banking to help with prudential oversight and governance as Revolut begins to rapidly expand its offering.
In recent months, Revolut has established a strong relationship with the Bank of Lithuania, which is a member of the European System of Central Banks, in order to ensure robust capital and liquidity management in advance of their banking licence application. Lithuania is one of the most exciting fintech hubs in Europe right now and their infrastructure and consultative regulatory approach is designed to support high growth companies.
Revolut currently allows users to open a prepaid current account in 60 seconds where they will receive instant spending notifications, spending categorisation and can set weekly or monthly budgets. Revolut also allows users to hold and exchange 25 currencies in-app with the real exchange rate, send free domestic and international money transfers and spend abroad in over 130 currencies with no fees with a contactless MasterCard.
“We delayed applying for a banking licence because we wanted to focus all of our resources on product innovation from day one. Even without a banking licence, we have attracted over 950,000 users across Europe, many of whom consider Revolut as their primary current account and spending card,” said Andrius Bičeika, Revolut Baltics Country Manager
“With our European banking license, Revolut will offer enhanced consumer protection through the European Deposit Protection Scheme and will offer interest bearing deposit and credit products. We’re building out a mobile-first, global financial platform to serve the needs of our unique international customers for the 21st century,” Mr Bičeika concluded.