Kartik Swaminathan’s Post

It took Revolut just 9 years to transform from a FinTech startup to High Street Retail Bank. Last month, Revolut finally after 3 years secured its British Banking License. But the three-year wait was not easy. Revolut had to negotiate with Softbank for months to eliminate preference shares - a pre-requisite for a UK Bank License. It had to appoint a dedicated UK CEO to strengthen governance. All this, despite securing EU Banking License from ECB in 2021. Finally, after 9 years, Revolut is a High Street Bank in its core markets (UK and EU). But Revolut isn't stopping here. It has already laid its eyes on India - the largest emerging FinTech ecosystem. Earlier this year, Revolut received in-principle approval from the Reserve Bank of India (RBI) to issue Prepaid Payment Instruments (PPI). This approval builds upon Revolut India’s existing licences for issuing multi-currency forex cards as well as for cross-border remittance services. Since Nik and Vlad launched Revolut in 2015, it has onboarded 45M users and has scaled to $2.3bn in revenue with ~$560M in profits. And they're just getting started. Revolut is currently valued at $40B and could possibly IPO at $100B+. Massive outcome for early investors Index and Balderton (I have worked at companies funded by them).

How Monzo Bank, Revolut, and Klarna are leveraging secondary share sales to navigate economic shifts As global economic conditions remain unpredictable, FinTech leaders like #Monzo, #Revolut, and #Klarna are taking strategic steps to secure their market positions. One of their key strategies? Secondary share sales—and it's more than just about liquidity. In our latest blog, we dive into how these industry giants are using this financial maneuver to: 🔸 Strengthen liquidity and prep for future IPOs 🔸 Boost market perception and investor confidence 🔸 Foster operational stability and fuel growth With central banks cutting interest rates and economies in flux, these FinTechs are showing us how to adapt to shifting tides and come out stronger. From ensuring financial flexibility to retaining top talent, Monzo, Revolut, and Klarna are setting the stage for long-term success and leadership in the digital banking world. Curious about how these moves could shape the future of FinTech? Check out the full blog here: https://lnkd.in/dgdNHRBN #CInnovation #FintechInsights #FintechInnovation #FinanceInsights #BankingRevolution #DigitalTransformation #BankingInnovation #FinancialGrowth #Finance #Banking #NeoBanking #FinancialServices #Fintech #BankingNews #TechInFinance #FinancialNews

🚨 BREAKING NEWS 🚨🚀 Incredible News in the Fintech Space! Yes Bank's monthly UPI transactions have soared by over 50% following the strategic collaboration with Paytm. 💸 🌐 This partnership signifies a remarkable growth trajectory for both organizations, showcasing the power of synergy and innovation in driving digital payments. 📈 The surge underscores the increasing adoption of digital payment solutions and highlights the pivotal role that collaborative efforts play in fostering financial inclusivity. ✨ Kudos to Yes Bank and Paytm for ushering in a new era of seamless, efficient, and secure payment experiences for millions of users across India. #Fintech #DigitalTransformation #CollaborationGoals #PaymentsInnovation

Great to chat to the Financial Times about Wise and U.K. neobanks… Full article as well as my recent FT piece on neobanks in comments 👇 The big UK banks were sleeping at the wheel with poor customer service, crazy high FX transfer costs and late improvements in online banking. But neobanks are also benefiting from unsustainable and low multiple net interest income as they earn 5% and pass little back to customers…. Looking at higher customer numbers and higher average customer balances is more important than revenues… Can neobanks scale? Wise is guiding to fast cost growth…is this investing for the future like Amazon or a biz model that lacks operational leverage…. Unlike most software biz, fintech banks have to hire thousands of people in fraud, anti-money laundering and risk as regulators treat them like the big banks as they get bigger….. Wise is cutting fees - how much of this is competitive pressures from likes of Revolut? How deep are the moats? Nubank is the north star in fintech banking...but don't forget it's huge customer growth (100 million now!), huge operational leverage/healthy cost income ratio, its unbank/underbanked story which doesn't apply in developed countries and also how crazy high the supernormal profits of incumbents were in its home market of Brazil. #banks #fintech #markets

We're witnessing an exciting evolution in the digital banking sector. Revolut's recent private valuation of $45 billion and Nubank's milestone of 100 million customers across Brazil, Mexico, and Colombia highlight the incredible growth of both challenger banks and neobanks. In the race to redefine banking, let’s compare the difference between the two: 🔹 Customers: Nubank leads with 100M, Revolut at 50M. 🔹 Profitability: Both are profitable! Nubank earns more per customer, but Revolut extracts slightly more profit per customer. 🔹 Strategies: Nubank focuses on select markets, while Revolut is expanding globally. As digital banks like Nubank and Revolut lead the charge, the sector remains ripe for disruption. Even with their current success, there is significant room for growth; their revenue per user still lags behind giants like Netflix and Meta. This highlights the vast potential for innovation and revenue expansion, especially if companies like Revolut secure full banking licenses to broaden their service offerings globally. Want to learn more about the difference between challenger banks and neobanks and the business model of Nubank and Revolut? 🧐 Read the insights we summarised 👉 https://lnkd.in/eXhtQrrZ The future of finance is being reshaped. Join us in exploring these transformative changes with the "Rearchitecting the Financial System" programme, featuring insights from top CEOs, CIOs, Founders, and industry leaders at the Singapore Fintech Festival. Learn more about the programme 👉 https://lnkd.in/eEy64hfE #Nubank #Revolut #Fintech #Challengerbank #Neobank Huy NGUYEN TRIEU, Tram Anh Nguyen, Kanishka Joshi, Peng-Yu (Melody) Lin, Brendy Yin, Melike Evtut, Jude Madi, Rhea Singhania, Paloma Nisola, CFTE Middle East, CFTE Singapore – The Centre For Finance, Technology and Entrepreneurship, CFTE Community News

It's a real shame what's happening with Paytm, but it kind of highlights something that's been an open secret: traditional banks have never really been fans of fintech companies. It's a mix of jealousy and frustration on their part. They see these fintech startups making banking friendlier and wonder how they're worth so much when all they're doing is sprucing up the user experience. Meanwhile, the banks can't seem to catch up, which just adds to their frustration. The truth is, fintechs have been pretty much going it alone. Neither the regulatory bodies nor the general public have had their backs. At the end of the day, people need banks, and fintechs, for all their innovation, are just a middleman. Now, with interest rates going up, the days of winning customers over with just a slick app interface are winding down. Looks like we're all going to have to get used to dealing with the clunky bank apps again, like it or not. That's just how it's always been, and it seems like that's not changing anytime soon. Creating a great user experience is tough, no doubt. But what's even tougher is navigating the maze of banking regulations. #paytm #fintech

Revolut's 2023 Results Are . FinTech is Here to Stay! #Fintech #Banking #Revolution Holy moly, Revolut just dropped their 2023 financials and they're mind-blowing! We're talking record revenue of $2.2 billion (up a whopping 95% YoY!), net profit soaring to a record $428 million (from a measly $7M in 2022!), and a massive $22.7 billion in customer balances. And that's not all - they added a record 12 million new customers in 2023, bringing their total user base to 45 million! That's enough to make Revolut the world's second-biggest neobank, right behind Nubank. But here's the real kicker: 70% of their new customers found Revolut organically or through word-of-mouth! That kind of organic growth is a testament to the value they're providing. This is a clear sign: FinTech isn't going anywhere. It's here to disrupt the traditional banking world, and Revolut is leading the charge. What are your thoughts on Revolut's growth? Is FinTech the future of banking? Let's chat in the comments!

Growth: #Retail #Banks as #Digital #Engagement Platforms "The new #generation has been raised on #fintech products. In many cases they’ve never gone to a #branch—they’re truly digital natives who may have used only virtual cards" - Francesca Carlesi, UK CEO, Revolut. Amid the excitement of fintech #innovation, it has been easy to forget that banks have distinct #advantages in their proprietary access to #customer data and their high customer engagement. To provide a counterweight to fintechs that embed #financial services into non-banking journeys, banks are developing their own #commerce sites, where they can #leverage their vast insights into customer needs and behavior to pinpoint #offerings and #rewards. In many cases, connected commerce #platforms will succeed or fail on the quality of partnerships between banks, fintechs, and #merchants— the classic win-win-win scenario.

What I always recommend to my clients as they look to scale their companies is to see what the big players have done beforehand and emulate what they can by creatively incorporating those strategies themselves. The largest success stories aren't simply down to "luck". There are always key principles to follow and you need to analyze the past in order to succeed in the present!

bunq mulls London IPO as Euro neobank plots Monzo Bank and Revolut UK challenge. Bunq, Europe’s second largest neobank with eleven million customers, also reported its first full year of profitability on Tuesday, with a net profit of €53.1m in 2023. Bunq’s gross fee income grew by 20 per cent year-on-year in the fourth quarter, while user deposits rose nearly fourfold to just under €7bn. Bunq has submitted an application for an E-Money Institution (EMI) licence to the Financial Conduct Authority (FCA) and already has a full European banking licence and has applied for one in the US (see link in comment 👇). Bunq differs from its UK peers in that it asks for a subscription fee for its services. https://lnkd.in/etmgBA-E #neobanks #digitalbank #challengerbanks #valuation #subscriptionmodel