Revolut’s rise to become Europe’s US$115 billion big bank rival
The London-based company has a “diversified business model”, a spokesperson said
London-based fintech startup Revolut has established itself as Europe's most valuable company and a formidable competitor to traditional banking institutions, having expanded rapidly since its launch over a decade ago. Despite its impressive valuation of US$115 billion, Revolut faces challenges such as generating modest revenue per customer and having a relatively small lending business by industry standards.
CEO Nik Storonsky aims to make Revolut a truly global bank, expanding into markets worldwide while earning revenue from various products and services rather than solely through lending. The company, which is privately valued at US$115 billion, has recently obtained new licences, aiming to become one of only a few banks with retail operations spanning the globe.
Revolut's 2025 pretax profit of £1.7 billion (US$2.2 billion) is a fraction of Barclays' £9 billion, but analysts predict its growth will accelerate further. Traditional banks, including HSBC, are reducing their retail footprints in favor of digital competitors. In the US, Revolut faces intense competition and will need to navigate a highly competitive market.
Despite a fine for money laundering in Lithuania and a data breach in 2024, Revolut maintains that it has implemented measures to prevent such incidents in the future. With 80 million customers globally, Revolut has made significant strides in customer acquisition, although it relies heavily on fees rather than loans, resulting in lower per-customer revenue compared to traditional banks.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
