Interview of N Storonsky, CEO Revolut - PFF20
Revolut is an online banking system that is much better and cheaper than the traditional banking system. At this time Revolut has around 11 million clients and they are increasing up to 20 to 40 thousand every day. According to an analysis, there are 350,000 plus business account registered on Revolut which is a huge milestone for a digital bank that just came around, and as it is said that the product speaks for itself. It is the same case going on here.
Why Better Than Other Banks?
Revolut claims itself to be better than other traditional banks. Revolut provides financial services for everyday use. Traditional banks take fees on every transaction but Revolut provides free transactions and a fraction of fees compared to other physical banks on bigger transactions or business accounts.
Revolut is better than other banks in many other ways too. It is an online banking system so it is operated through a mobile app. It provides its users with free international transactions so that people can easily avoid the huge charges at other banks. It features cheap insurance and also provides commission-free trading on the cryptocurrencies market and stock exchange.
How It Makes Money?
Everything is free on Revolut then how it makes its own money? Revolut earns revenue through money interchange and also it has different subscription plans for its users like Spotify, Amazon Prime, etc. So, the subscription earns the money too. Also, Revolut charges a certain fee on bigger transactions which is certainly on business accounts. Its CEO said that it was not profitable before but got profitable in November 2020.
Revolut is a British Financial Technology Company. Its headquarters are in London and was founded in 2015. It provides services like currency exchange, debit cards, virtual cards, Apple Pay, and a lot more.
Success doesn't come easy at all. You have to work hard for it. If you want to earn millions then you have to bear the loss at first too. Slow and steady wins the race fits in the success story of Revolut. At first, it had a staff of 1500 people and now it is up to 5000. When more and more business accounts started rolling in Revolut to save extra fees they had to pay on every transaction it got $800 million funds in Revolut. These $800 million funds raised the value of Revolut to $33 Billion.
While taking a closer look at Revolut year by year growth, it is evident that the company gradually strived and expanded within a few years as it was founded in 2015. With hard work and the best services, it entered the unicorn club with a total value of $1.8 Billion which was a huge success at that time. In December 2018, Revolut got its first challenger bank license. In 2019 it launched commission-free stock trading in New York Stock Exchange. 2020 is the luckiest year for Revolut success. Because by 2020, the value of Revolut multiplied to 3 times of the total value at first. Also, in 2020 Revolut launched its mobile app in Japan and gained considerable profits in no time.
Revolut provides better services compared to the other traditional banks. It provides the best and easy banking services such as peer-to-peer transactions which people are adapting more and more in terms of DeFi. People think it is much better than the CeFi as they get full control over their funds. The users can also create GBP and EUR bank accounts using Revolut. It has a debit card service.
As now more and more people are investing in the stock market and cryptocurrencies so it provides a better and easy solution to investors as well. With Revolut investors can invest their money easily. It supports ATM withdrawal in 120 currencies which is a huge margin that it is giving to other traditional banks. It has a mobile app because it was launched as a digital bank first. With Revolut investors can also invest in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. by converting fiat currency. Luckily, Revolut supports the conversion of 25 fiat currencies to cryptocurrencies.
Nikolay Storonsky is the co-founder and CEO of Revolut. He is a British Russian entrepreneur. He studied for a master's degree in Physics at Moscow from the Institute of Physics and Technology. Not only this, but he also has a master's degree in economics. During his student life, he was a state champion swimmer.