In the ever-evolving landscape of fintech, Revolut has stood out – at least for me – as the darling of the UK sector since its inception in July 2015.
Founded by Nikolay Storonsky, a former Lehman Brothers trader, and Vlad Yatsenko, an expert in financial systems at Deutsche Bank, both of whom worked together at Credit Suisse (who has, incidentally, just left the Wharf). With CVs and bonafides submitted, in the realm of digital banking alternatives, Revolut continues to democratise the consumer market at pace. 30M, and counting.
Revolut took market share quickly, driven by Storonsky’s frustration with existing foreign exchange offerings. The company offered bank-to-bank rates fee-free and a £5K currency exchange limit per month for their standard customers. This has been reduced to £1000 for their standard free plan, but you can nonetheless see the appeal. Not to mention – what a strong kick-off to their game, right? Free currency exchange is something we can all back. I have locked in several positive exchange rates weeks in advance of campaigns all over the globe, and exited ‘the position’ positively on return simply and easily.
At its inception, Revolut was a simple prepaid card and app designed to facilitate cost-effective currency exchanges for globetrotters. I haven’t, thankfully, had to call in the Winter sports insurance for a chopper ride off the mountain, but it’s a very slim card to zip into a ski jacket. Sadly, equipment insurance tops out at £1500 which won’t cover my Zai skis – something which is as much Zai’s fault as it is my alpine alter ego. However, 10M medical should cover the chaps from Air Zermatt if I ever need a real exfil from the middle of a crevasse. That’s for 90 days as well. Generous, and only really worth having if – like me – you are occasionally in the mountains filming on location till the snow melts. I’m minded to test the Worldwide element of it with a trip to Serbia in winter.
Since those early days, the company has embarked on a well-funded journey of continuous expansion, amassing a global customer base and consistently enhancing its suite of financial solutions.
In a refreshing departure from the conventional high street banking experience, Revolut offers an account sans the burdensome paperwork. It’s a swift and hassle-free process, boasting the remarkable ability to open a Sterling or Euro account within a mere 60 seconds, without the need for credit checks or proof of address. You can take things entirely virtual and set up multiple cards in-app using Apple Wallet or Google Pay, or order a physical card if you like to keep things tactile. As is the norm in this market, Revolut offers several plans and the benefits vary depending on the monthly subscription.
We started with the entry-level product to see what you’re essentially getting gratis. The standard account does indeed take 60 seconds to set up and includes the fee-free currency exchange Monday to Friday, up to £1000 a month. The Metal account, however, has no forex limit and comes with a host of benefits across travel and investments. The personalised metal card, interestingly, seems to hold a certain allure when settling the bill. You can of course inscribe yours in a multitude of pithy ways, and conveniently order it through the platform.
Revolut’s physical card is a versatile tool that allows you to transact in your base currency as well as many others. When you load funds onto the card, you’re presented with two options. Firstly, you can opt to convert your balance into a currency of your choice, locking in the exchange rate. Alternatively, you can maintain your funds as a cash balance in sterling, and whenever you use your card abroad, Revolut applies the exchange rate of that moment and deducts the corresponding amount in sterling. You’re at the mercy of the markets opting for the latter, but plan a few weeks or months ahead and you can build a modest spread portfolio of the currencies you use.
Whilst I have watched the Gold, Silver, Platinum and Palladium markets with interest over the last year, I haven’t yet made the jump into the metal markets. However, I watch with intent. A 1.49% fee is something you’ll have to consider based on your own portfolio and size of trades, and you can also trade crypto with exchange fees of 0.99%. If you’re looking for active stock trading you’ll get ten free trades with the metal plan. The commission fee thereafter is the greater of 0.25% of the order amount (lowered to 0.12% for Ultra customers), or the minimum country-specific fee. That’s right, Ultra. Having been a customer for a year I’m more than happy with Metal, but as always, the need to increase the customer base year on year means the product packages are often up for further curation.
It’s worth mentioning that Revolut supports businesses to the tune of 10K new clients monthly. I haven’t got into the finer details of the offering personally, but the ability to take payments using my iPhone alone and set spending limits for team accounts appeals.
The item I have used more than any other is the SmartDelay. Free lounge access if your flight is delayed by an hour or more, and sure – bring your three travel companions with you. I have used this countless times during delayed transit but the reduced lounge pass fees are well worth the app alone in my opinion. I believe Ultra offers an entirely free lounge access pass as part of the service. While I quietly grind my teeth at the constant need to level up, I’m well aware that this is just the way of things.
Revolut’s long-term goal is to build the first truly global bank – where consumers worldwide are serviced via the same app operating on a single technology platform. If the PRA gets out of the way, the fintech sector in the UK could continue to burn brightly for the masses.
