Revolut just dropped their annual report and the numbers are simply stunning.
In 2024, Revolut processed over £1 trillion in transaction volume, a 52% jump from the previous year, and customer deposits grew to £30 billion.
Extraordinary fact: Revolut now serves more customers than HSBC!
The question I hear you ask is: why? Why are they the stand-out European start-up? Why are they succeeding? What is the secret sauce? Having been around enough fintech startups and challengers to see the day-to-day way they work, my take is: focus and timing.
They’ve built a diversified revenue machine through integrating cards, subscriptions, wealth products, business accounts, and more. Add to this their focus upon what you need in your life with premium plans like Ultra offering everything from unlimited airline lounge access to free mobile data via eSIMs.
The aim is to make Revolut a financial super-app, where you put everything money-related in one place. As Revolut puts it, it is “to simplify all things money, empowering our customers to achieve their financial goals through innovative and effortless banking solutions.”
But there is more than this. You cannot become the favoured financial app in over thirty countries by just being good. You have to be brilliant. This is illustrated by the fact that localisation is at the core. Revolut is becoming the world’s local bank (heard that before?). Revolut has moved from a one-size-fits-all model to tailoring its product offerings, securing local licenses, and building country-specific partnerships. Do the basics, lay the foundations and then build from there.
Equally, timing is everything. I’ve personally been involved in startups that tried things before the market was ready. In other cases, startups that tried to run before they could walk. This lesson applies to any company in any market: do what you can do when you can do it and the customer wants it. As the old song goes: It ain’t what you do, it’s the way that you do it, and that’s what gets results.
So there are lots of people lauding and applauding Revolut today, but I think it all comes back to starting simple and building from there. Revolut’s start was an easy payment system in an app. That built into an easy money transfer system across borders in an app. That led to easy money transfers, payments and banking … in an app. The particular spur in the last months has been easy money transfers, payments, banking and crypto in an app.
The build and focus has been impressive and has led these fantastic results.
The question is: where do you go from here?
Well, obviously AI is a critical factor, as revealed last November. Just a reminder, here are the key 2025 priorities for the company:
Artificial Intelligence
Revolut’s AI-powered financial companion will adapt to customers’ needs and preferences in-app, guiding them towards smarter money habits, enhanced financial decision-making and streamlined admin
Mortgages
As Revolut continues to shake up traditional financial service offerings, the company confirmed plans to launch its mortgage product in Lithuania followed by Ireland and France in 2025. The goal is to offer a fully digital mortgage product that is the fastest on the market.
Revolut Business
In 2025, Revolut Business will bring its first business credit product to Europe and aims to offer one of the top business savings rates in all EU markets next year. Revolut Business also plans to help companies manage their restaurant and store operations with Revolut Kiosk, for which it is exploring biometric payments, and plans to continue to push its Revolut Pay offering with multiple payment methods including, in future, Buy Now Pay Later.
ATMs
Revolut will start rolling out branded ATMs to Spain first, for use in early 2025.
Globalisation
Revolut is also rolling out in the USA, Asia and other markets including Brazil, where it will go head-to-head with NuBank, the other stunning challenger bank start-up.
All in all these are exciting times for Revolut and their razor-sharp focus on timing and opportunity is working well. I salute them!