Digital bank Revolut has managed to secure a million clients throughout Europe since its launch in 2015 and is presently focusing on 10 million by 2020, its CEO told Reuters. However, to turn a profit, Revolut’s CEO is determined to bring new customers from conventional banks. Revolut clients can spend access cash abroad in more than 130 currencies without paying an fee.
“Traditional banks spend hundreds of dollars to acquire each customer. Revolut has managed to reach one million card holders purely through word of mouth,” said Martin Mignot, partner at Index Ventures, a backer of the firm.
Revolut, located in the Canary Wharf financial district is among a grasp of fintech startups contesting with traditional banking by offering banking services that clients can access completely from their cell phones. The turning point comes as the startup tries to become a completely authorized bank, extending its administrations to overdrafts and advances. Organizer and CEO Nikolay Storonsky hailed “exceptional” organic growth and an increase in transaction value as a “clear identification” of clients utilizing Revolut as their principle account.
“The business is adding between 3,000 and 3,500 new users a day, up 50 per cent from three months ago,” Storonsky told Reuters.
Between the gained clients, they have made more than 42 million transactions worth $6 billion. The UK is Revolut’s biggest market with many of its clients, trailed by France with 150,000 and 60,000 in the Baltic areas. It is intending to begin operations in the U.S., Singapore, Hong Kong, Australia and New Zealand ahead of schedule next year. The race for clients is warming up among new businesses hoping to go up against the huge banks, with 2017 being where most have launched their services to the general population. The organization earns its income from commission paid by shippers and from additional items, (for example, through insurance, which is provided third party through the application).
Rival digital challenger bank Monzo, which is a fully licensed bank, announced it will have more than half a million current account holders by the end of the year and could even reach as many as 800,000 clients.