Revolut represents a revolutionary fintech innovation that is redefining the way we approach traditional banking.
The digital banking platform offers a comprehensive suite of financial services, from currency exchange to budgeting tools and international money transfers.
This insight delves into the details of how Revolut works, its key features, and the benefits it brings to the table.
Revolut works similarly to a travel card. Within its free app, you're provided with different currency accounts, you can buy and sell travel currency on the app by topping it up from your Bank. You can apply for a Visa card to spend with or use a digital contactless card.
Revolut is a UK-based fintech company that offers a plethora of banking services through a digital platform. Founded in 2015 by former financial experts Nikolay Storonsky and Vlad Yatsenko, Revolut has quickly amassed a considerable customer base, boasting over 25 million users worldwide. Initially, the company focused on offering a prepaid card and app for travellers to conveniently switch between currencies at favourable rates. Today, Revolut has expanded its offerings to include a broad range of financial services.
The primary feature of Revolut is its app-based account, which you can set up in a matter of minutes. The platform offers a prepaid Visa or MasterCard (depending on the location) that can be used for transactions globally. Spending, transactions, and account management are all handled through the Revolut app, making it an entirely digital banking experience.
Getting started with Revolut is a simple process. The app can be downloaded for free onto a smartphone or tablet. Once installed, users can set up a Sterling or Euro account in under a minute. Revolut does not carry out initial credit checks or ask for proof of address, making the registration process quick and hassle-free.
Upon successful account creation, users can request a physical or virtual card. The physical card is a prepaid contactless Visa card that can be used worldwide. The card delivery is free, but postage costs may vary based on the chosen delivery speed.
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Revolut offers a range of features aimed at making banking more convenient and financially beneficial for its users. Here are the standout features:
Revolut shines in its ability to facilitate transactions in over 150 different currencies. The platform uses the real-time interbank mid-market rates, ensuring users get the best possible exchange rates. This feature is especially handy for travellers or those who deal with international transactions regularly.
Revolut includes an in-built budgeting feature that helps users track and manage their expenses. The app automatically categorises all your purchases, making it easy to see where your money is going. You can also set monthly budgets for specific categories to avoid overspending.
An innovative feature of the app is the 'Vault' function. This feature allows users to round up their purchases to the nearest pound, depositing the spare change into a savings vault. It's an effortless way to save money, and the funds in the vault can be accessed at any time.
Revolut places a strong emphasis on security. Users have complete control over security settings, from temporarily deactivating the card to toggling various features like contactless payments, ATM withdrawals, and online payments. Additionally, for Premium and Metal card users, Revolut offers disposable virtual cards for added security during online transactions.
In addition to personal banking services, Revolut also offers business accounts. Revolut Business allows companies to hold, receive, and exchange multiple currencies using the interbank exchange rate. Business account holders can also benefit from prepaid multi-currency business cards and integration with accounting software like Quickbooks and Xero.
Revolut offers several pricing plans to cater to different user needs. The basic 'Standard' plan is free and provides access to most of the platform's core features. For a monthly fee, users can upgrade to 'Plus', 'Premium', or 'Metal' plans, which offer additional benefits such as higher withdrawal limits, overseas medical insurance, and cashback on spending. Revolut also offers a 'Pro' plan specially designed for freelancers and self-employed individuals.
One of the main advantages of Revolut is its international usability. The platform allows fee-free spending abroad in over 150 different currencies. This means you can use your Revolut card just like a local debit card in many different countries, with no additional fees for currency conversion.
Compared to traditional banks, Revolut offers a more flexible and cost-effective solution, especially for international transactions. It bypasses many of the fees and exchange rate markups typically associated with traditional banking.
When compared with other digital banks like Monzo and Starling Bank, Revolut's multi-currency capabilities and international focus give it a unique edge. However, unlike Monzo and Starling Bank, Revolut is not yet a fully licensed bank in the UK, which means it does not offer some banking services such as overdrafts or loans, and deposits are not covered by the Financial Services Compensation Scheme (FSCS). However, they are covered by through approved safeguarding measures.
Revolut provides a robust and convenient alternative to traditional banking, especially for those who travel frequently or deal with international transactions. Its app-based platform offers a range of features designed to make banking more efficient and financially beneficial. However, as with any financial service, it's important to consider your individual needs and circumstances before deciding if Revolut is the right choice for you.
Although Revolut is not yet a fully licensed bank in the UK, it has successfully established itself as a reliable and innovative player in the fintech space. As the company continues to expand its range of services, it's worth keeping an eye on how Revolut could further revolutionise the banking landscape.
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Revolut has successfully transformed the way consumers engage with their finances, offering a holistic digital banking solution that caters to a range of financial needs. Whether you're a frequent traveller, a small business owner, or simply someone looking for a more efficient way to manage your money, Revolut offers a compelling proposition. By understanding how Revolut works and the benefits it offers, you can make an informed decision about whether this digital banking alternative is right for you.
Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.
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