- Revolut has launched as a bank in 10 Central European countries using a Lithuanian banking license.
- The startup has also applied for a UK banking license and hopes to achieve profitability this year.
- Revolut broke even in December and was valued at $5.5 billion in 2020 after raising $500 million.
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Revolut has started operating as a bank in 10 Central European countries.
Using a license issued in Lithuania, Revolut Bank will operate in Bulgaria, Cyprus, Croatia, Estonia, Greece, Latvia, Malta, Romania, Slovakia, and Slovenia.
The British-born startup and financial app has been operating as a bank in Poland and Lithuania since last year while maintaining its services in other European countries using its e-money license.
Revolut started 15 years ago as a service for withdrawing money outside users’ home country without commissions, exchanging currencies at a more favorable exchange rate than with banks, and making payments between friends.
In February last year, Revolut was valued at $5.5 billion after raising $500 million from TCV, a Silicon Valley growth fund.
The advantage of a banking license is that it allows Revolut to be used for deposits, while e-money licenses mean Revolut serves as more of a wallet for its users.
After Brexit, the company moved its license from the UK to Lithuania in order to continue operating in European markets. However, Revolut has also applied for a UK banking license to improve its profitability.
“Revolut is now the fastest growing fintech company in Europe because we put the customer at the heart of everything that we do. Our product design is second to none, we have no hidden fees, and we are constantly building new and innovative financial products,” Revolut Bank CEO Virgilijus Mirkės said in a statement.
“Launching the bank in ten new European markets will provide a greater level of security and confidence for our customers, and will enable us to launch a host of new products and services in the near future,” he added.
In December 2020, the company broke even following a 40% revenue decrease earlier in the pandemic, suggesting that profitability may soon be on the cards.