FinTech: Revolut Expands Across the Atlantic; Dismisses Corona Concerns

March 25, 2020 | FinTech, Latest News, News
https://dailyalts.com/wp-content/uploads/2020/03/45766663321_f8acd83314_c-revolut.jpg

The challenger bank makes its much-awaited U.S. landfall.

Digital “neobank” Revolut, the London-based fintech unicorn, is rolling out its app-based banking service in the U.S. The upstart bank, which commenced operations in 2015, has already amassed over 10 million customers in the U.K. and Europe. App-based Revolut has no physical branches. U.S. customers can now open an account with a debit card in minutes using their smartphone. (PYMNTS.com)

Revolut’s U.S. ambitions

According to The Verge, Revolut’s app was in beta testing in the U.S. since June 2019 using 60,000 testers. Moreover, prospective U.S. customers are in a waiting queue to sign up with the British fintech.

Revolut itself has eyed the U.S. market for years. Last month, it gained the financial heft to support its ambitions across the Atlantic. It raised $500 million at a valuation of $5.5 billion, a threefold increase from when it was last valued by investors at $1.7 billion in April 2018.

Regulatory complications may have slowed its U.S. expansion, though it has now tied up with Metropolitan Commercial Bank (NYSE: MCB). The FDIC, therefore, insures customers’ deposits up to $250,000.

With Revolut who needs a bank?

Revolut has piled on convenience features for customers. Direct deposit customers get their pay two days before being paid by their employers. Real-time remittances are free, and across 28 currencies at the interbank rate.

“When spending or transferring money overseas, most people are unaware of the hidden fees that banks are charging them,” said Nik Storonsky, founder and chief executive officer (CEO) of Revolut. “The world is becoming more connected, and financial services should be supporting this notion, not hindering it.”

Further, customers have access to 55,000 ATMs in the U.S. and abroad. Along with a debit card, customers may also opt for a disposable virtual card. They can also set up financial budgeting, as well as categories for capturing expenses and payments.

Storonsky rejects coronavirus rumors

Revolut hit back at rumors that it was in financial trouble due to the virus pandemic. A report by Rosenblatt Securities warned that Covid-19 could wipe out $76 billion from fintech unicorn valuations.

Storonsky responded: “The Coronavirus pandemic is causing unprecedented movement in financial markets. Naturally, this can be alarming and can allow rumors and false information to spread quickly. To put your mind at ease, I’d like to make Revolut’s position super clear. Last month, we raised $500 million from investors. So I want to make clear that for Revolut it’s business as usual.”

Related Story: FinTech: Loans at Figure Tech Jump 300% after Last Week’s Rate Cut by the Fed

Image credit: Flickr                                                  

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/04/57e0dd424d51ab14f1dc8460c62c3e761c3dd6f85254794c72287ad49f48_640.jpg
REITs: Big Insider Buying at Hudson Pacific Properties
April 1, 2020     News, Real Estate

Prices of Real Estate Investment Trusts and real estate operating companies plunged in March. Officers and directors of many REITs have stepped up to buy the shares the public has…

https://dailyalts.com/wp-content/uploads/2019/07/chess-1151804_960_720-cohen.jpg
Hedge Funds: Steven Cohen Warns of “Tremors” After the Earthquake in the Markets
April 1, 2020     Latest News, News

Steven A. Cohen, the founder of Point72 Asset Management, warned investors to be cautious about the current market environment. The fund manager suggested that the markets haven’t fully recovered from…

https://dailyalts.com/wp-content/uploads/2020/04/45040825874_d750661c45_c.jpg
Liquid Alternatives: American Century to Launch Active ETFs That Disclose Quarterly
April 1, 2020     Liquid Alternatives, News

Thursday, April 2, marks the beginning of a new era of active, non-transparent ETFs. In a brave step considering the current market conditions, American Century Investments will launch Thursday two…

https://dailyalts.com/wp-content/uploads/2020/04/via-transit-comp-shuttle-valuation.jpg
Ride Sharing Startup Via Raises $400M @ Valuation of $2.25B
April 1, 2020     News, Venture Capital

Dial-a-shared-shuttle startup Via raised $400 million in a Series E funding round led by Exor (BIT: EXO) at a valuation of $2.25 billion. Exor is a holding company of the…

Scroll to Top