The Revolut unicorn, a disruptive force in banking

July 7, 2019 | FinTech, News
https://dailyalts.com/wp-content/uploads/2019/07/52e6d7414350b114a6d98074cf213576083edbe3515575417c2c78_640.jpg

The lessons it learnt en route to unicorn status

Not long ago, Revolut, the UK-based digital “challenger” bank, wanted to become the Amazon of banking. Today, the Revolut unicorn is now worth billions.

Started in July 2015 by two bank ex-employees, Revolut has a set a torrid pace towards its aim to become a global financial player.

Scooping up $336 million in venture capital financing till date, it was valued at $1.7 billion in its last funding round, putting it in the prized “unicorn” club.

Here’s an astounding statistic: Between June 2018 and now, users on Revolut’s banking platform have more than doubled to 5 million.

Revolut – a unicorn’s rocky path

Revolut’s initial brief was to cut out the middlemen and allow fee-free transactions in foreign exchange. This gave it a subscriber base, setting it on a high growth path.

That came with problems.

The online bank was once accused by the media of having a toxic workplace and a high turnover of employees.

Another media report claimed the bank routed illegal transactions when its sanctions screening system was down.

The Financial Conduct Authority,a financial watchdog of the UK, also investigated the claime.

Revolut management has dismissed the charged. However, they admit these incidences were valuable lessons.

Revolut unicorn and profitability

Does Revolut make money? Not yet, but it soon might.

The digital bank’s strategy is to provide the main product free and cross-sell other services around it.

The key to becoming profitable is, therefore, a large enough customer base.

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.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/11/mockup-5288033_640.jpg
Alternative Investments: Accelerate Launches An ETF For Alternative Assets
November 25, 2020     Alternative Investments, News

Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…

https://dailyalts.com/wp-content/uploads/2020/11/bitcoin-4852534_640.jpg
Digital Assets: Japanese Financial Group SBI Launches Crypto Lending
November 25, 2020     Digital Assets, News

SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…

https://dailyalts.com/wp-content/uploads/2020/11/screenshot-www.hippo_.com-2020.11.25-17_21_34.jpg
FinTech: Hippo Insurance Gets $350M Funding From Mitsui Sumitomo Insurance
November 25, 2020     FinTech, News, Venture Capital

Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…

https://dailyalts.com/wp-content/uploads/2020/11/carrots-4545665_640.jpg
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech

Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…