The Business Model of Revolut
Revolut is one of the most successful online-banking start-ups ever and now UK‘s leading neo bank. The London based fin-tech company was founded in 2015 by Vlad Yatsenko and Nicolay Storonsky. Revolut is a digital alternative to traditional banks that helps customer improve their financial conditions, gives them more control and connects people seamlessly across the world. Revolut focuses on two customer segments, B2B, businesses that have global operations and want easy and cheap transactions and B2C, individual customers who want to send or receive money internationally. Revolut prevents their customers from wasting money on international transactions, as they charge no to small fees. Revolut provides pre-paid cards: digital cards, f.ex. for apple pay, a physical card and a virtual disposable card, where the card details get changed after every single online purchase for safety reasons. Users can withdraw cash and pay with the “Revoult-card” in stores. Revolut also offers its users foreign currency exchange and peer-to-peer payments. They have a tiered subscription model and the subscription plan comes with different features, the more you pay the better features you get. Revolut also makes a profit with insurance commissions, trading, loans to financial institutes, as well as individuals and interchange fees. Revolut helps it‘s customers to manage their money in an easy and effective way, with the help of analytic features that show the customer’s spending history and create budgeting plans. Furthermore, Revolut offers multiple extra functions in their app which are split into 5 segments: essentials, wealth, lifestyle, utilities and travel creating a lifestyle people can enjoy when using Revolut. Users can also trade cryptocurrencies through the Group’s trading partners, get exposure to metal commodity prices, buy and sell certain shares. All those features are very handy and have pulled multiple businesses and countless individuals for performing everyday transactions with Revolut.