Revolut talks up 50% customer deposit boost from banking licence

By Oliver Smith on Monday 11 January 2021

Digital Banking

The fintech believes a successful application will further transform its fortunes.

Revolut talks up 50% customer deposit boost from banking licence
Image source: Nikolay Storonsky/Revolut.

Digital banking giant Revolut believes up to half of its customers will be willing to deposit their salaries and switch to Revolut as their primary bank account, once it has secured a banking licence.

The data comes from an internal customer survey published in The Sunday Times this weekend, and as the fintech continues its licence application with regulators which reportedly began back in March 2020.

Speaking to The Sunday Times, Revolut CEO Nikolay Storonsky said a banking licence: “will allow us to compete with large British banks because we will be providing better services at better costs with deposit insurance.”

Storonsky also confirmed that Revolut’s monthly profitability, which the fintech announced in November, had continued in December.

Banking challengers have long struggled with increasing the number of customers who deposit their salaries, rather than just using accounts as ‘spending cards’.

Both Monzo and Starling Bank have had increasing success in recent years, as demonstrated by the Current Account Switching Service’s figures.

Once Revolut secures a banking licence, its customers’ deposits will be directly covered by the Financial Services Compensation Scheme, which protects funds up to £85,000.

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