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MONEY APP REVOLUT is set to begin offering traditional banking products including credit cards and personal loans to Irish customers this year after being granted a full European banking licence.
The fintech firm, which is currently regulated by the Lithuanian Central Bank, is planning to increase its offering to Irish customers as Ulster Bank and KBC Bank move to exit the market in the Republic of Ireland.
In a statement this morning, Revolut — which claims to have over 1.7 million Irish customers — said it has opened a waiting list for a personal loan product, marking its “first steps” towards launching a service called Revolut Bank.
Under the new service, personal loans will be available to both old and new Revolut customers, the company said.
Other lending products will be available later this year, according to a spokesperson.
Revolut’s Irish customers will also be able to sign up for bank accounts — guaranteed up to €100,000 — backed by the Lithuanian Deposit Guarantee Scheme. The fintech outfit previously operated in the Irish market under a UK e-money licence but began shifting its European customers to its Lithuanian operation in 2018 due to Brexit.
Since then, the company has been operating within the European Economic Area (EEA) under a specialised ‘challenger bank’ licence.
However, the European Central Bank decided to grant Revolut a full banking licence in December, allowing it to issue credit to customers in Ireland and across the EEA.
It was also granted an e-money licence by the Central Bank of Ireland before Christmas, which it applied for in 2019.
But Revolut has decided not to use the Irish licence, meaning that some jobs are likely to be lost at the bank’s Irish operation where it currently employs around 100 people.
In a statement, Fianna Fáil senator Malcolm Byrne said the decision effectively means the company is moving its operations to Lithuania altogether.
He criticised the length of time it took for the Irish regulator to approve Revolut’s e-money licence.
“Fintech companies have been expressing concern that the approach of the Central Bank has been such that it is more focused on ensuring the stability of the traditional pillar banks rather than encouraging new entrants into the market,” Senator Byrne said.
A spokesperson for the Central Bank of Ireland said the regulator notes Revolut’s plans to launch full banking services in Ireland, which are still “subject to regulatory approval” by the Lithuanian central bank.
The spokesperson said, “The Central Bank also notes the decision by the firm that it no longer plans to use an e-money licence, which it had sought from the Central Bank.”
“Such strategic decisions are matters for the boards of firms, in line with their own business objectives.
“The Central Bank operates a transparent and robust process for applicants seeking authorisation and has an active authorisation pipeline across all regulated sectors.”
The spokesperson added, “The Central Bank deals with applications for authorisation from firms across all financial sectors in an open, engaged and constructive manner.”
In a statement today, Revolut Europe Chief Executive Joe Heneghan said, “We are delighted to launch Revolut Bank in Ireland, offering Irish consumers more competition and innovation.
“With the imminent withdrawal of KBC and Ulster Bank from the market, it is clear that a new bank is needed to compete with legacy banks on price and service.”
“Customers can now register their interest in a Revolut Personal loan, and we look forward to delivering more innovative products this year.”
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If they do offer something new, it would be great for irish consumers. A good excuse to ditch the rip of that is irish banks.
@The Bolt: Can’t wait for this as I find their platform so easy to use, will dump my AIB accounts as soon as their bank accounts come online. It will suit my needs better and the fees are a lot better than the Banks here.
ohhhh Bank of Ireland and AIB aren’t going to be happy. Wait till the lobbyists get to work on the politicians and put as many road blocks as then can in front of them….
Ireland is all about monopoly. Banks , insurances , housing , politics.
Just like Diarmuid have said – our lot will put as many blocks as they possibly can so that Revolut would stay away from monopolised irish market.
I’m sure the head of the bankers federation won’t be happy, Sure after all they did try and block Revolut numerous tines including the banks joining up together.
To counteract the threat from the likes of Revolut and N26.
Go to your credit union, they support local communities .
@Ger: my credit union doesn’t offer a debit card, so I won’t be able to use them mainly. Would if I could but competition here is bare. Will be using revolut as my main driver once this launches.
@Ger: Do that too, but Ireland is a banking wasteland.
@Ger: I have a current acc with my local credit union, it is a poor excuse for a current account, no debit card, poor online account and no facility for standing orders. I use it for household bill direct debits only, it is good for little else! I live in one of the largest towns in the country and my branch now incorporates several branches, given how poor it is I can only imagine how bad smaller CUs must be
@Jo H: It’s not the fault of CU’s. The Central Bank, since the crash, are putting every obstacle they can to hinder the CU’s and how they do business. The CU’s were getting too big and the Banks were losing too much revenue so the CU’s had to be curtailed. The CU’s started out in the 1930′s as Banks for working class people when they wouldn’t be allowed inside the door of the established banks. With the recent restrictions imposed by the Central Bank, many smaller CU’s have to amalgamate to survive.
@Ger: opening houses tend to be no where near adequate for a lot of Credit unions. The one I did used was staffed by elderly volunteers rather than professionals
@Sean Stevenson: Mine does, a decent app, good enough support, good loan offerings (all better than regular banks). Got Revolut as well, offers more but reluctant to get my salary paid there (bad customer reviews).
@Ger: credit unions now controlled by the central bank.
have you tried using a credit union account. they are dreadful as current accounts.
revolut would be light-years ahead in the technology stakes.
@ed w: EBS aren’t much better. I’ve got both a revolut and ebs accounts and the difference is like night and day.
@ed w: yep flipped my KBC account to a credit union current account and no issues whatsoever
Good news. Competition is the life of trade.
@Joe McNamara: there is no competition in this country
Once they have the desired market share and have put in place barriers to changing bank then the fees will go up.
Some of these companies play their customers like a fiddle.
(Not defending the Irish banks, they are dreadful)
@Eddie O’Neill: Have you experienced that with revolut?
@Connor Coady: 100% – Only takes a quick google. And as a revolut user I can confirm it. https://www.bonkers.ie/blog/banking/revolut-to-introduce-new-fees-and-charges-for-customers/
Still the Government are rushing to sell their share of AIB, ensuring they will have no control over the 2 remaining banks ensuring AIB & BOI can get back to taking advantage of their monopoly
Finally a worthwhile home for the money under my mattress.
@Peter B: That you Bertie?
Unfortunately it won’t work for them. Given the absolute reluctance of irish customers to take out insurance and investment products added to the fact that Revolut aren’t offering mortgages, there simply isn’t a profitable business model there unless they charge meaningful fees for their current accounts.
People in Ireland tend to not realise that day-to-day banking facilities cost a lot yo provide and bring in zero income. Credit card take up continues to decline here and personal loans alone won’t prop up a bank given our population size.
@Lee King Buckett: like everything that is “free”, the majority of revenue in banking is data on the users and their buying habits, it’s a very very profitable business, we are the product, same as we are to traditional banks
@Lee King Buckett: It’s our main problem when you boil it down, we simply don’t have a big enough economy. Which is why I would support a united Ireland.
they could try the pay now pay later
Do Revolut not offer Bank Aacounts already here? Thought that was what I am using already?
I’m not surprised that Revolut walked away from the e-money licence – they had to jump through so many hoops of fiscal malfeasance to obtain it in the first place — Now that they are in a position to offer proper banking in Ireland is a positive thing – I, for one will be moving all accounts out of the reach of BOI and others. Having used Revolut for a couple of years especially when exchanging monies – no hoops or charges and instant transfers with security – Western Union look out .
Brilliant news …. So this will make Bitcoin legal tender in Ireland …. You can buy bitcoin on Revolut which will be a legitimate Irish bank The price it bitcoin will definitely go to the moon!
By that logic, it would make more sense for us to join the UK
have your say