Whether you’re an advocate or a critic of cryptocurrencies, one cannot ignore the shockwaves they have been sending throughout the whole of the financial industry. Revolut is no stranger to embracing new and innovative technologies, and has now delved into the realm of cryptocurrencies, reports Briony Richter
UK banking startup, Revolut has been hitting the headlines this year. This November, the company announced the milestone of gaining one million customers and now they have brought three cryptocurrencies on board. Bitcoin, Litecoin and Ethereum are now available for Revolut customers to trade, hold and buy in all 25 base currencies Revolut offers.
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Exchanges like Coinbase and eToro impose complicated fee structures when buying a cryptocurrency, usually involving multiple rates, deposit charges and hidden fees. Overall, this can potentially cost the customer between 5-9% mark-up on the average exchange price, whereas Revolut only charge 1.5% with no other hidden fees.
Speaking to EPI, head of global brand & communications at Revolut, Chad West explains the benefits of being involved in cryptocurrencies.
“I think there are a lot of misconceptions around why we did it. A lot of people think we did it for the traders, the real crypto enthusiasts but actually, it was the complete opposite. We wanted to bring the exposure of cryptocurrencies to the masses. Right now it’s everywhere, on social media, all over the news and a lot of people want to get involved.
“We’ve implemented a way in which people can seamlessly get exposure to cryptocurrency in 30 seconds with just a single tap and it will appear in their Revolut account. There is huge demand from consumers to engage in it and, I would say that we at Revolut are the first to bring crypto to the mainstream.”
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By GlobalDataThe fintech sector has been at the forefront for exploring the potential of cryptocurrencies in the financial industry. Now banks are starting to embrace blockchain technology. Earlier this year a roster of banks including HSBC, Barclays, State Street, Credit Suisse, MUFG and the Canadian Imperial Bank of Commerce joined UBS’s blockchain initiative. Although Revolut has only just launched cryptocurrencies, West says that the company has been looking into cryptocurrencies for nearly two years.
“Everything we do is based on dialogue with our customers. We are very much community driven and cryptocurrency exposure was the number one requested feature from our customers in 2017.”
Knowing who the customers are on a personal level enables Revolut to gain insight into their activities, and learn more about how to deliver better, more tailored services. West states that by adopting cryptocurrencies, Revolut has attracted more customers that are exclusively interested in cryptocurrencies.
“It’s been predominantly millennials but there have been older customers as well. We have seen a lot of new customers between the ages of 18-30 coming to Revolut purely for cryptocurrencies. We can now expose them to not just the cryptocurrency part but everything else we have to offer.”
If once cryptocurrency was seen as a tool for underground criminal activity, it has now become the topical conversation at the dinner table. Bitcoin itself however, has had its fair share of critics. JPMorgan Chase CEO, Jamie Dimon has called bitcoin “a fraud.” Philip Lowe, the governor for the Reserve Bank of Australia also dismissed Bitcoin calling the fascination with the cryptocurrency as a “speculative mania.” For Revolut, the bubble isn’t going to burst anytime soon.
Asked what the future is for cryptocurrencies, West says: “It will become more mainstream. More companies will start rolling out cryptocurrency spending cards. It’s got a good future and I think Bitcoin will continue to grow.
“In terms of regulation, if it can be done, I hope it would be done in a way that supports cryptocurrencies. We are looking to take on more digital currencies, possibly one or two more in 2018.” West acknowledges that there are risks with cryptocurrencies but if harnessed securely he believes they can have a positive impact on the financial sector.
A diverse and energetic young company, Revolut focuses on continuing to create innovative products and services for its customers. Often a secondary account for customers, Revolut has seen its numbers rise in terms of active daily usage.
West highlights that: “It’s been a journey. We are now showing around 250,000 daily active customers. That implies that 250,000 people are using Revolut as their main account. We are averaging over 600,000 monthly active customers. That figure indicates a combination of people using it monthly for spending but not necessarily every day.”
The future of the financial industry will be paved with disruptive technological advances. Despite the popularity and current boom in price, cryptocurrency is not without risk. It’s a volatile commodity that could quickly drop in value at any moment. Nonetheless it’s a technological advancement that isn’t going away anytime soon.
