The British company Revolut is a direct internet bank. The company was founded in 2015 by former employees of Credit Suisse, Deutsche Bank, Lehman Brothers and Expedia. At the end of 2020, Revolut already had 13 million customers and was considered by experts to be Europe’s leading digital bank. Revolut supports ATM spending and withdrawals and supports 120 currencies, 26 of them directly from the app. This digital payment alternative also enables access to numerous crypto currencies. By the end of 2021, the company is predicted to have 15 million customers in 35 countries.
Most recently, Revolut acquired large financing and the amount reaches a total of £675 million. The company now wants to use funding to venture into new business areas. Specifically, the digital bank is entering the brokerage of travel offers in Great Britain. Holiday and traveling bookings should also run via the banking app. For a few days now, users in the UK have been able to book hotel rooms and sometime later, the company will include travelling services, such as flight booking as well as car rental. The company also plans to promote tickets to sightseeing tours.
From the UK to All Over the World
After the service launch in Great Britain, Revolut would like to implement the system in Europe and then in the USA. This way, Revolut creates a new competitor for the top dogs such as Booking.com and Airbnb. In the future, this will also provide Revolut’s partner companies with a great deal of valuable data, which will include names and ages of customers, home and email addresses as well as telephone numbers.
Entering travelling industry does not come as a complete surprise. It ultimately follows the Revolut’s master plan. The company planned to emulate similar apps from Asia. There have long been so-called super apps like WeChat, which have numerous functions for their users. Similarly, the Revolut app also has many different offers like buying insurance, crypto currencies, and even precious metals. The company will expand that portfolio again in the future. The goal is to make the user stay in the app for as long as possible.
The founder and CEO, Nikolay Storonsky, also underlined this goal in a public statement. He highlighted that his company wants to build a global super app. In his opinion, Revolut offers better value and better service than any other comparable providers. Revolut is consistently pursuing the goal to stay ahead of its competitors and would like to build a comprehensive suite of financial products in the app. Their motto is to have services, which are personalized and tailored to the daily needs of customers.
At the same time, Revolut wants to stay transparent and offer low fees, and they now have the necessary capital for this. The last investment round attracted big names such as Tiger Global and Softbank. With a value of €28 billion, Revolut is currently more valuable than Deutsche Bank or Credit Suisse. But rapid growth is causing losses as well. In 2020, the losses of the company rose to over €200 million. So, only the future will show whether their new venture strategy works.