Revolut, founded in 2015, has emerged as a frontrunner in the world of neobanks, offering an all-in-one digital platform for personal and business finance. With more than 45 million customers globally, Revolut has experienced rapid growth, expanding to 38 countries and transforming from a simple currency exchange service to a comprehensive financial super-app.
Neobanks, like Revolut, have redefined banking by offering digital-first, branchless services that cater to the modern consumer. Unlike traditional banks that rely on physical branches, neobanks operate entirely through apps and websites, providing a more streamlined and often less expensive way for customers to manage their money.
In Europe, this model has found widespread appeal, particularly among younger users and SMEs who appreciate the efficiency and cost-effectiveness of digital banking. Revolut's success in Europe is bolstered by the fact that it offers services in over 30 currencies and processes approximately £13bn in global transactions monthly. Additionally, Revolut is expanding its portfolio across Europe by offering personal loans in Poland, Lithuania, Ireland, Romania and Spain. The company has set an ambitious goal to become "one of the top three entities" in Europe's financial sector. This strategic push into personal loans, along with its neobank model, reflects Revolut's intent to diversify and solidify its position as a leading fintech innovator across the continent.
In Malta, Revolut has surpassed €450m in monthly transactions, underscoring the neobank's success in penetrating this digitally savvy market. With its user-friendly interface, competitive exchange rates and broad suite of services - including multi-currency accounts, cryptocurrency trading and low-fee international transfers - Revolut has become a staple for both consumers and businesses. The company's impact is reflected in the fact that it was the most downloaded finance app in Malta in 2022, demonstrating its strong foothold in the local fintech ecosystem.
Revolut's reach in Malta is particularly striking: seven out of 10 adults use the platform, and there are currently around 300,000 Revolut customers, representing 68% of the adult population. These impressive figures place Malta among Revolut's top five global markets, solidifying the company's dominance in the region. While loans are expected to be introduced to Malta in the future, this service won't be available until after 2024. Nonetheless, Revolut's success in the country is indicative of its broader European expansion, where neobanks are steadily challenging traditional banking models by offering more flexible, transparent and accessible services.
Building on its European success, Revolut has set its sights on the Asia-Pacific region, where digital banking is growing rapidly. In August, Revolut launched Revolut Business in Singapore, marking its first major foray into the region. This platform, designed for businesses of all sizes, offers an integrated solution for managing financial operations, including global payments, multi-currency accounts and real-time spending reports. Singapore, with its status as a global trade hub and a fintech-friendly regulatory environment, provides an ideal launching pad for Revolut's expansion in Asia. The neobank has already seen strong demand in Singapore, with over 1,500 businesses on its waitlist before the platform's launch.
Revolut's expansion into Singapore is just the beginning of its global ambitions. The Asia-Pacific region offers significant growth opportunities for neobanks, particularly as governments and financial institutions push for greater financial inclusion. In addition to Singapore, Revolut is likely to target other high-growth markets in the region, including Indonesia, the Philippines and Vietnam, where large segments of the population remain unbanked.
While Revolut's initial focus in Singapore is on business clients, its broader potential in the region lies in advancing financial inclusion. Financial inclusion refers to the effort to provide access to affordable financial services to underserved populations, and it remains a critical issue in many parts of Asia-Pacific. For instance, over 70% of adults in southeast Asia are either unbanked or underbanked, meaning they have limited access to formal financial services.
Neobanks like Revolut can play a crucial role in addressing this gap. Their digital-only model allows them to reach populations that traditional banks struggle to serve, particularly in regions with high smartphone penetration but limited access to physical bank branches. Revolut's ability to offer low-cost, user-friendly financial services makes it an ideal solution for advancing financial inclusion in these markets. Additionally, Revolut's expanding loan offerings currently available in selected European countries, have the potential to provide underserved communities with critical access to credit, further advancing financial inclusion in both developed and emerging markets.
To conclude, Revolut has positioned itself as a global leader in the neobank revolution. By offering an all-in-one financial solution that includes everything from cryptocurrency trading to business accounts, Revolut is transforming the way people and businesses manage their money. As the company continues to innovate and expand, it has the potential to become a key driver of financial inclusion, not just in Europe and Asia-Pacific, but on a global scale, making financial services more accessible and inclusive.
Lina Klesper in an International Legal Assistant at PKF Malta