By Tommy Reggiori Wilkes
LONDON (Reuters) – In a significant move towards its ambition for global growth, Britain’s leading digital finance platform, Revolut, announced on Tuesday that it is considering the acquisition of a U.S. bank as part of its strategy to expand its international presence. The company is also gearing up to introduce consumer credit services in the UK, positioning itself to compete more aggressively with established financial institutions.
As the most valuable player among European fintech firms, Revolut aims for a staggering $75 billion valuation in an upcoming secondary share sale, solidifying its status in the rapidly evolving financial technology landscape.
With a customer base of 65 million—surpassing the largest European banks—Revolut’s current deposit levels and revenue figures remain considerably lower, highlighting the room for growth in its offerings.
During the unveiling of its new headquarters located in London’s bustling Canary Wharf financial hub, company executives outlined a bold plan for expansion. Revolut intends to funnel $4 billion of a total $13 billion global investment plan by 2030 into the UK, underscoring its commitment to its home market.
“The UK is our cornerstone, and we are firmly dedicated to its financial ecosystem,” stated Nik Storonsky, Revolut’s CEO and co-founder, who spoke at the event alongside UK Finance Minister Rachel Reeves, who praised Revolut and the burgeoning fintech sector in Britain.
Revolut is currently “actively exploring” the potential acquisition of a U.S. bank or the possibility of applying for its own banking license in the United States, as expressed by Sid Jajodia, Revolut’s U.S. CEO, thereby confirming earlier speculations regarding its ambitions in the U.S. market.
Jajodia highlighted the importance of establishing a banking presence in every market in which Revolut operates, particularly in the U.S., where its market share is still modest.
Executive Storonsky emphasized that securing a UK banking license is his top priority. The licensing process, which has been ongoing for several years, is crucial in enabling Revolut to transition its 12 million existing UK customers to the new banking entity, allowing them access to credit products. The executives are optimistic about obtaining final approval for the license within this year.
Revolut’s planned investments in the UK aim to create an additional 1,000 jobs and adequately capitalize the newly established UK bank.
This ambitious $13 billion investment target is noteworthy considering Revolut’s estimated global revenue of 3.1 billion pounds (approximately $4.2 billion) projected for 2024.
Additionally, the company has set an ambitious deadline of mid-2027 to achieve its goal of reaching a total of 100 million customers.
Despite its impressive growth trajectory, analysts have pointed out that the average deposit per customer remains lower than that of conventional banks, and company officials acknowledge that a small percentage of customers use Revolut as their primary banking account. Last year, the company reported a pre-tax profit of 1.1 billion pounds, significantly buoyed by its earnings in the cryptocurrency sector.
Looking towards the future, Revolut has disclosed plans to enter 30 new markets by 2030, encompassing regions in Latin America, Asia, and the Middle East, furthering its quest for global foothold.
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