In early February 2020, Revolut – the digital bank with its
headquarters in London – became the most
valuable financial technology start-up in the UK, with a value of £4.2
billion. This valuation is a result of a funding round that raised £387
million from investors led by Technology Crossover Ventures (TVC), a United
States fund that has previously backed successful firms such as Netflix,
Spotify and Airbnb.
Thanks to the new funding round, Revolut has more than
tripled its value since spring 2018, when it was valued at £1.3
billion, marking an almost meteoric rise for a business that was launched in
2015. At the time, the business model was centred on providing free currency
exchange services through a pre-paid card product. Over the years, the service
offering has expanded into other avenues such as business banking, current
accounts, stock trading and cryptocurrency, to ten million customers around the
world.
For those not familiar with Revolut, the company’s digital-based
financial solutions are considered threats to conventional bank accounts.
Through a mobile app, individuals can open an account from which they can
spend, send and receive money. Additionally, the company has added features
that allow users to obtain travel medical insurance, purchase shares and
cryptocurrencies, and even donate to charitable causes.
Many of these services are directed towards UK customers, even
though the platform is steadily expanding to the rest of Europe. However, the
focus remains the same: to improve banking operations across the region. The
company has also announced plans to expand beyond Europe and into the US and
Japan.
Revolut’s rise in the fintech industry is one that’s bound to give
hope to many other start-ups and solutions providers seeking to disrupt the
financial services industry. Razi Salih, a
businessman with a decade of experience in the financial sector, understands
the appeal of fintech products and knows how useful they can be to a growing
consumer base that is accustomed to technology.
 |
| Fintech's Various Applications |
Revolut’s
Appeal
The company’s goal is to give more control to its clients,
allowing them to open personal or business accounts that facilitate easy money
transfers and spending without hidden costs. It’s designed to provide
flexibility to consumers looking for an alternative from conventional financial
institutions.
Some of its main benefits include:
·
Currency Conversion: One of Revolut’s
biggest draws lies in its currency conversion rates, which it doesn’t mark up
like typical currency exchanges. Customers changing between various currencies
get to pay the same rate as banks, which translates to savings.
·
Multiple Accounts: Customers who prefer
to use different currencies, especially during international travel, can store
their money in multiple currencies for as long as they like.
·
Multiple Payment Options: Upon signup,
users can choose between card, cash and transfer as their payment options.
Subscribers to the Premium tier receive a Mastercard they can use to withdraw
cash at automated teller machines (ATMs) in other countries. The card can also
be used to transact like a credit card.
·
Fraud Detection: With the Revolut app,
users can set it up to receive alerts any time they spend money, enabling them
to manage any transactions they don’t immediately recognise. The app also
allows users to change their pin number or even block their card should they
lose it. This last feature is particularly appealing to international
travellers who might find themselves in such a situation.
With new innovations continually coming from the fintech
industry, the established banking model is under pressure to keep up. Its
services and product may fit a lot of consumers, but there’s a section of
modern customers who are looking to transact away from conventional banking.
Revolut is looking to serve these customers, and its offering looks well-suited
to those who transact business internationally or transact a lot.
No comments:
Post a Comment