Revolut is a Russian-Ukrainian portmanteau and a symbol of the rising fintech sector

Whilst Italian and European bankers are locked in power struggles on the ‘Risiko’ board – often having to contend with sovereignist governments in the financial arena – new players are quietly taking centre stage, demonstrating that, perhaps, the real challenge lies elsewhere and is of a technological nature. The fact that the Revolut group – the fintech platform hailing from Eastern Europe with a history worthy of a novel – has been granted a banking licence in France marks a turning point in the European banking system. Founded in London in 2015 by Nikolay Storonsky and Vlad Yatsenko – the former a manager of Russian origin, the son of a Gazprom executive, and the latter an engineer of Ukrainian origin, a partnership that just a few years later would have been hard to imagine – Revolut has created a digital system that allows individuals and businesses to receive and send money worldwide and to access many other services, including those related to cryptocurrencies, thanks to a zero-fee account. Eleven years on, Revolut already has 75 million customers globally, 30 million of whom are in Europe, with 8 million acquired in the last year alone. And in Italy – a fact that is not often highlighted – Revolut is already the fifth-largest bank by number of customers (5 million), and is well on its way to breaking into the top three as more and more Italians use this system to spend, save and manage their day-to-day finances. From now on, Revolut will be able to operate as a fully-fledged bank, having received authorisation from the French supervisory authority following a decision adopted by the Governing Council of the ECB.

Paris will be Revolut’s headquarters in Western Europe, a region in which the company has committed to investing one billion euros and hiring 600 people, and which represents the area of greatest growth in terms of private wealth. “The French banking licence strengthens the foundations that enable Revolut to serve its customers to the highest regulatory and operational standards, and brings it closer to its goal of becoming Europe’s largest and most trusted bank, built on local relevance, institutional credibility and continuous product innovation”, explained a statement from the group, adding that Revolut Bank “will begin serving customers in Europe, starting with France and then moving on to other markets, including Germany, Ireland, Italy, Portugal and Spain”. It is well known that Revolut, with its advanced algorithm, represented a complete novelty on the global banking scene, but the fact that it has managed so quickly to gain the approval of European supervisory authorities – something not to be taken for granted for new-generation financial intermediaries, for reasons of security and the protection of savers’ funds – is a development that traditional banks will have to come to terms with. In Italy, for example, with the exception of Intesa Sanpaolo and Unicredit, or digital-native banks such as Fineco, investment in technological innovation remains stagnant or limited, as recent surveys by the Bank of Italy have shown. In short, Italian banks are still a long way from making the leap into fintech, particularly small and medium-sized institutions, and this is due to financial constraints arising from their size. However, despite the limited resources allocated to innovation, shareholder remuneration policies are becoming increasingly generous.

In other countries, things are moving more quickly. According to founder Nik Storonsky, France has become a leading financial hub, supported by a dynamic ecosystem and a robust regulatory framework. “It is the ideal place to focus on the rapid development of Revolut’s next phase of growth, as it aims to become one of Europe’s largest and most reliable banks.” For Revolut, this is undoubtedly the start of a new chapter, and for the European banking system, it is a challenge – the realisation that what makes the difference is a model that brings together different cultures and experiences. It is no coincidence that Revolut was founded in London, the global capital of finance and a hub for professional networks. When Storonsky and Yatsenko met, both had worked at major international investment banks, gaining in-depth knowledge of traditional banking – a sector struggling to keep pace with a globalised and digitalised world. This gave rise to the idea of a technology platform that would meet the need for speed and convenience, and above all, at costs infinitely lower than those of traditional banks. Initially, it was called the ‘travellers’ bank’ because it was little more than an app, but in a short space of time, it transformed from a start-up into a unicorn. A round of funding from investment funds – with whom Storonsky and Yatsenko had regular dealings during their time at investment banks – did the rest. What is incredible is that the growth of their business partnership coincided with Russia’s increasingly aggressive stance towards neighbouring territories, culminating in the invasion of Ukraine in early 2022. A geopolitical development that could have undermined their venture. But that was not the case. Storonsky, who has held British citizenship since 2013, immediately condemned Russia’s actions in a public letter.