• Ivan Ferdelja

Revolut lessons to neobanks

Revolut has been hugely successful in meeting customer demand for modern financial services. This is an overview of how their focus and roadmap has changed over the years. Here are some key takeaways.

A frictionless card product is essential

For a fintech trying to capture the payments segment, there can't be any wrinkles in the core card product. Without question, customers will expect that the card "just works". Security, notifications, virtual card and Apple/Google pay are now just hygiene.

Credit is the only way to viability in B2C banking

With some noteable exception (e.g. Chime), many challenger banks (e.g. N26, Revolut, ...) have turned to lending money to their customers as a way of reaching higher ARPUs. As proven by traditional institutions, lending interest presents a vast majority of banking revenues.