Revolut signs up 1m users saving them fees worth £120m

Revolut has announced that it has signed up 1m customers across Europe and saved consumers over £120m in hidden fees as the fintech continues to disrupt traditional banking.

London-based Revolut is said to be now signing up between 3,000 and 3,500 new users every day, an increase of 50 per cent growth from three months ago, and users have now made over 42m transactions to date with a total transaction volume of $6.1bn.

Nikolay Storonsky, founder and CEO of Revolut, said: “Whilst our organic growth has been exceptional, we still have a long way to go.

“To boost growth across Europe, we have launched local teams across key European markets to enhance our brand awareness and we’re pressing ahead with global expansion, with the United States, Singapore, Hong Kong… all planned for early 2018.”

Over half of Revolut’s 1m user base currently reside in the UK, with more than 150,000 users based in France, 60,000 in the Baltics and over 50,000 in countries such as Germany and Ireland.

Revolut has also revealed that over 42 per cent of its users are aged 25-35, perhaps an indication that traditional banks aren’t meeting the needs of younger generations.

The news underlines Revolut’s success across Europe, despite the claims from many within traditional financial services who claim that fintech is fizzling out. Many of the traditional banks are still lumbering under outdated systems that are struggling to compete with such disruptive banking.

More impressively, Revolut has also revealed data showing they have saved their users over £120m in foreign exchange fees to date, with savings primarily coming from card payments abroad, global money transfers and international ATM withdrawals.

Martin Mignot, partner at Index Ventures, added: “Traditional banks spend hundreds of dollars to acquire each customer. Revolut has managed to reach one million card holders purely through word of mouth.

“Revolut’s growth is a reflection of the team’s ability to create a financial product that people want to use every day, because it is easy, instant and free.”

The widespread appeal of features such as device insurance, instant credit, personal IBANs, Premium accounts and Business accounts have boosted growth, while support for cryptocurrencies, Apple Pay, Android Pay, pay-per-day travel insurance and stocks and bonds investments are to be available soon.

The news follows Revolut’s recent application for a European Banking Licence, expected to be in place by early 2018, enabling them to offer credit and deposit services across Europe.

Revolut is planning to expand into North America in early 2018, too, followed by other expansions around the world.