February 3, 2023

Pinoy Trekker

Pinoy Trekker – We go anywhere

“We made profits despite the crypto meltdown” By Investing.com

©Reuters

By Alessandro Albano and Francesco Casarella

Investing.com – “Revolut tries to make everything easier.” So began Nikolay Storonsky, the CEO of the London-based digital bank, which in just a few years has managed to gather 20 million customers and an overall valuation of around $33 billion , higher than UK banking giants like Barclays (LON:) and Lloyds (LON:), speaking at Web Summit 2022.

“We are no longer a start-up, but we look to the future with the same approach. Our goal is to continuously innovate the products we offer,” said the CEO.

With continued expansion in Europe and significantly increasing market share in the territories it covers, the bank is increasingly pushing to offer traditional banking services such as “loans and other credit services” to its customers and plans to launch its first offerings “in the US”. to bring next two years.”

In Italy, for example, in addition to fee-free transfers and deposits, App-Bank recently launched Revolut Pro Business Services, that is, a free business bank account for freelancers to store bills, payments and business-related expenses, it succeeded.

However, in the UK, where it was founded in 2015, the bank is still awaiting a license from the FCA to operate as a traditional bank, although the CEO is confident the issue will be “at the latest within the next few months.”

“In five years we will be in more countries with a stronger local presence,” Storonsky added, noting that each state has “different banking regulatory guidelines” and that could result in the bank having different products in their respective countries offers.

Another popular service among Revolut clients, which raises doubts from the financial authorities, is the ability to trade cryptocurrencies. A feat that brought in 35 percent of the bank’s revenue in 2021, but “only 5 percent” this year.

However, as Storonsky told Bloomberg a few days ago, “cryptocurrencies have great potential for financial systems,” making it hard to imagine the company giving up this crypto trading service.

Additionally, one of the criticisms leveled at Revolut in recent years is its lack of profitability and operating margins that are seen as too low. “We have been operating profitably for a year,” the CEO replied at the Lisbon conference, “mainly thanks to the volume of payments, exchange fees and the opening of premium accounts for companies and individuals.”