Lets talk Britain. There has been a whole bunch of new digital banks that launched in Great Britain over the last year or two, BUT only one is standing out for becoming profitable. Or, at least breaking even on a monthly basis (but hey, that’s the first step, right?). Revolut now has over 1.5M users all across Europe and is expanding to more markets as we speak (or type). AND, Revolut is just in the process of obtaining a banking license (many of its unprofitable competitors are banks) so it is remarkable how they have become break-even so fast. So, HOW? Products, product products and being the only British digital bank to operate across Europe…..so far. One of the “slightly” overlooked products they offer? The ability to buy, sell and hold cryptocurrencies in the Revolut app. Hmmmmm! THAT’S the secret ingredient to signing up all those new accounts (at least I think so). Hello banks. Read and learn.
(Bill Taylor/Managing Director)
“LONDON (Reuters) – Financial technology firm Revolut has become the first of a new breed of digital banks in Britain to break even on a monthly basis after a swelling user base and a suite of new products helped it bolster revenues in December.
Revolut, which has gained popularity with users for cheap and easy foreign exchange and is in the process of securing a banking license, now has 1.5 million users across Europe.
The firm is one of a number of digital banks that have sprung up in Britain in the past few years, offering slick apps, cut-price fees and a “marketplace” where users can shop around for products from a variety of providers.
Some have seen significant user growth since, but all are loss-making.
Revolut founder Nikolay Storonsky told Reuters that December’s result was driven by strong user growth and uptake of its products — trends that had continued into 2018.
“In January we had an even stronger month…and again we are up 20-25 percent on revenues compared to December,” he said.
The firm’s closest peers including Monzo, Starling Bank and Tandem, which all have British banking licenses, told Reuters they had not yet seen a month without losses…”