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/2022/06/justice-gba45571bc_640.jpg
Digital Assets: Grayscale Protests SEC Rejection Of Spot Bitcoin ETF, Files Suit Against Regulator
June 30, 2022     Digital Assets, Latest News, News, Regulations

Grayscale Investments, the largest digital asset manager globally, has filed a suit against the SEC for rejecting its application to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF….

https://dailyalts.com/wp-content/uploads/2022/06/Twelve-sunglasses.png
Venture Capital/ESG: Twelve Raises $130M For World’s First Carbon Transformation Platform

Twelve has raised a $130 million Series B round to scale up its carbon transformation technology that converts captured CO2 into products traditionally made from fossil fuels. The firm’s technology…

https://dailyalts.com/wp-content/uploads/2022/06/amc-g39f4f8446_640-overlay.png
FinTech: Sam Bankman-Fried Of FTX Rejects Rumors He Is Acquiring Robinhood
June 30, 2022     Digital Assets, FinTech, News

FTX, the crypto platform owned by billionaire Sam Bankman-Fried, has scotched media reports that it was pursuing a deal to acquire commission-free trading app Robinhood (NASDAQ: HOOD). Bloomberg said Monday…

https://dailyalts.com/wp-content/uploads/2022/06/bitcoin-g9a41d1d1c_640-overlay.png
Alternative Investments/Digital: Amidst A Crypto Winter, 21Shares Launches The World’s Cheapest Physically Backed Bitcoin ETP

21Shares AG has launched a bitcoin ETP tailor-made for today’s crypto market, one that has been mauled by rampaging bears and gripped by a “crypto winter.” The 21Shares Bitcoin Core…