Revolut is a neobank that has taken the world by storm in recent years. It has quickly become one of the leading digital banks in the world, offering a range of services through its mobile application.
In this article, we will explore how Revolut works, its registration process, and the features it offers.
How Revolut Works
Revolut is a digital bank that operates entirely through a mobile application. Customers can download the app and register for an account in a matter of minutes.
Once registered, users can access a range of digital banking services.
Registration Process
The registration process for Revolut is relatively straightforward. First, download the app and create an account.
Next, you will need to verify your identity by providing personal information like your name, date of birth, and address. You will also need to provide a photo ID, such as a passport or driving license.
Once your identity is verified, you can start using your Revolut account.
Features offered by Revolut
Revolut offers various features that make it easier to manage your finances. Here are some of the key features:
1.
Transactions: With Revolut, you can make and receive payments in multiple currencies and send money to other Revolut users instantly. There are no hidden fees, and the exchange rate is always the interbank rate the same rate used by banks to trade with each other.
2. Budgeting: Revolut helps you to budget by categorizing your spending into different categories, such as groceries, entertainment, and transportation.
You can set budgets for each category and receive alerts when you are close to reaching your limit. 3.
Savings: Revolut offers a range of savings features, such as Vaults, which allow you to set aside money for specific goals. You can also enable Round Up, which rounds up your transactions to the nearest whole number and adds the change to your savings.
4. Trading: Revolut allows you to invest in stocks and cryptocurrencies directly from the app.
You can buy and sell shares or invest in crypto without the need for a separate trading account. 5.
Insurance: Revolut offers various insurance options, including travel insurance and device insurance. 6.
Donations: Revolut has a feature that allows customers to donate to various charities and causes directly from the app.
Conclusion
Revolut is a digital bank that offers a range of services through its mobile application. The registration process is straightforward, and customers can access a range of features, such as transactions, budgeting, savings, trading, insurance, and donations.
With its innovative features and competitive fees, it’s no wonder why Revolut has become a favorite among digital banking customers.
3) A Short History of Revolut
Revolut was founded in 2015 by Nikolay Storonsky and Vladyslav Yatsenko, both of whom had experience working in the financial sector. The pair noticed how transaction fees for exchanging money were high, and foreign exchange rates were often unfavorable to customers.
As a result, they set out to create a digital bank that would offer customers these services at a low cost. Their initial focus was on money exchange services, allowing customers to exchange money in multiple currencies without fees at mid-market rates.
As the company grew, it began offering a range of other financial services. Revolut underwent a Seed round of funding in 2015, which included investments from the accelerator program Level39.
In 2016, the company raised a further 1.5 million from investors, including Balderton Capital and Seedcamp. From there, the company experienced rapid growth, reaching one million customers within its first two years.
However, not all of Revolut’s growth has been positive. The company has faced controversy over its working conditions, with allegations of mistreatment of staff and unrealistic targets.
In addition, questions have been raised about the effectiveness of its anti-money laundering system. 4) Revolut’s Income Streams
Revolut generates revenue from a variety of sources:
1.
Subscription plans for consumers: Revolut offers three different subscription plans for consumers – Standard, Premium, and Metal – each with different features and fees. For example, the Premium plan includes travel insurance and higher withdrawal limits, while the Metal plan offers cashback on purchases and access to a concierge service.
2. Interchange fees for physical card transactions: Every time a Revolut customer makes a purchase with their physical card, the merchant pays an interchange fee to Revolut, which is a percentage of the transaction value.
3. International money transfers: Revolut charges a small fee for international money transfers, although the rate is typically lower than what traditional banks charge.
4. Perks program with selected partners: Revolut has partnerships with various companies, such as booking.com and Deliveroo, that offer Revolut customers discounts and other perks.
5. Insurance packages through subsidiary: Revolut’s subsidiary, Simplesurance, offers insurance packages for travel, mobile devices, and more.
Revolut earns a commission on each sale. 6.
Trading possibilities via Revolut Trading Ltd: Revolut recently launched Revolut Trading Ltd, which allows customers to buy and sell stocks and invest in exchange-traded funds. 7.
Loans and overdrafts: Revolut offers loans and overdrafts to customers, charging interest fees on each. 8.
Subscription plans for businesses: Revolut offers businesses several subscription plans, which offer expense management, bulk-payments, employee perks, API, roles, and permissions. 9.
Interest earned on cash: Revolut generates income by lending out the cash deposited by its customers and earning a net interest margin. In conclusion, Revolut’s range of income streams, including subscription plans, interchange fees, and partnerships, allow it to remain competitive in the digital banking space.
However, the company has faced challenges with its working conditions and anti-money laundering system, which it will continue to address as it grows. 5) Revolut Funding, Revenue & Valuation
Revolut has attracted significant funding from a range of investors since its inception.
In 2016, it raised 3.9 million in a funding round led by Balderton Capital and acclaimed investors like Alex Chesterman, founder of Zoopla, and Simon Nixon, founder of MoneySuperMarket.com. This was followed by two further funding rounds in 2017, the first of which raised 50 million, led by Index Ventures and the second of which raised 71 million and was led by Draper Esprit.
In 2018, Revolut raised a staggering $250 million in funding led by DST Global, the growth equity firm. This was in addition to funding from investors such as Lakestar, Greyhound Capital, and Global Founders Capital.
This round of funding brought the company’s valuation to $1.7 billion, making it one of the most valuable fintech startups in the world. Revenue and pre-tax losses for 2018 were disclosed by the company in April 2019, and the figures were impressive.
The company reported a revenue of 58.2 million, representing a 354% increase from the previous year, while pre-tax losses totaled 32.8 million. These losses were a result of significant investment in expanding the company’s operations globally and developing new products and services.
In 2019, Revolut expected to increase its revenue to 140 million, a figure that reflected the company’s increasing customer base and the addition of new features like cryptocurrency trading. Revolut’s latest funding round in February 2020 was a Series D round, which raised $500 million led by TCV, taking the company’s valuation to $5.5 billion.
This campaign included input from Growth Equity Partners. The hope is that this funding will help the company expand further, in addition to providing a buffer against the losses it incurred during its ambitious expansion efforts.
In conclusion, Revolut has attracted significant funding from a range of investors, including notable firms like DST Global, Index Ventures, and TCV. The company has reported impressive revenue growth, even though it’s pre-tax losses have been significant.
With its latest funding round, the company is well-placed to expand its operations further over the coming years. Revolut is a neobank that operates entirely through its mobile application, offering users digital banking services such as payments, savings, trading, and insurance packages.
The bank has a fascinating history, from its founders’ experience to its funding journey, and reports strong revenue growth annually despite facing significant losses. Its latest Series D funding round valued the company at $5.5 billion, which indicates that its business model has significant promise.
Despite experiencing controversy over its anti-money laundering system, Revolut continues to attract investors and customers worldwide. Revolut serves as a beacon of modern banking, and its innovative business model could shape the future of the financial sector.