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Revolut losses almost double to £207 million

Revolut losses almost double to £207 million

UK fintech firm firm Revolut saw losses almost double last year as it pushed out more services to an increasingly global customer base.

In 2019 Revolut reported a tripling of losses to £106.5 million, despite a sharp rise in revenues and customers. The cost of running the business has put further pressure on the bottom line, with losses for 2020 reaching over £207 million.

The firm - which is rumoured to be preparing a new $250 million fundraising round at a valuation of between $10 billion and $15 billion - put an optimistic gloss on the latest set of figures, pointing to a significant upturn in revenues to £222 million, driven by lockdown spending during the pandemic and sharp uptake of its newly-launched cryptocurrency operation.

The company said it made £39m on its cryptocurrency investments last year, with crypto service offerings to customer now accounting for almost 20% of revenue.

Cutsomer numbers are also up to 14.5 million from 10 million at the end of 2019, while deposits held in customer accounts grew by 96%t to £4.6bn compared to £2.4bn in December 2019

Nik Storonsky, CEO and co-founder of Revolut, says: “We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability. We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.”

Revolut, which has yet to publish a profit in its seven-year history, reports that it moved into the black in the last two months of 2020, a trend which is continuing into the first quarter.

Comments: (1)

Chris Vincent
Chris Vincent - Exela Technologies - Leicestershire 21 June, 2021, 12:59Be the first to give this comment the thumbs up 0 likes

Consumer banking is a challenging place to be at present. Revolut had some great solutions, but open banking and Request to Pay will give the mass market banks much of the functionality consumers want, but in an open environment. There are more opportunities in SME banking, but again the new(ish) OB and RtP functionality will give the high-street banks the tools they need to bring better (and value generating) products to market, but only if they embrace them.