Fintech startup Revolut can now function as a bank. The London-based startup has received a European banking license to offer traditional banking services to its customers, and thereby expand its range of products and services.
Revolut had applied for a license through the Bank of Lithuania and is now “leveraging passporting rules” to operate in other European countries.” Passporting rules refer to the laws that allow banks operating within the European free market to expand their functionality to territories of other member states.
Currently, Revolut features an in-app bitcoin and cryptocurrency exchange and works more like an e-wallet. The firm is looking to unfold its new services to customers in smaller markets and then in larger jurisdictions like the U.K., France, Germany, and Poland.
Customers in these countries will be able to apply for direct deposit and receive deposit insurance on up to €100,000 through the European Deposit Insurance Scheme. Later on, customers will be eligible for traditional banking services like overdraft protection, traditional personal and business loans, a real current account, and a non-prepaid debit card. Customers can, therefore, expect to see quite a few changes in the coming months.
Revolut believes that the insurance benefit will attract more users to opt for Revolut for their salaries and other transactions involving large sums of money. The firm claims that the monthly transaction volume generated by users is around $4 billion.
The firm claims that approximately 8,000⎯10,000 individuals are opening a Revolut account every day. The process of opening an account in Revolut is pretty simple and straightforward as users do not have to undergo the cumbersome KYC processes.
Founder and CEO of Revolut, Nikolay Storonsky, commented on the development saying, “With the banking license now secured, commission-free stock trading progressing well and five new international markets at 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.”
Back in April, Revolut revealed that it had raised $250 million in a Series C investment round, giving them an overall $1.7 billion valuation, thus making them a tech “unicorn.”
Around one year back, Revolut had also started supporting cryptocurrencies and currently allows its users to “gain exposure” to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Ripple (XRP).