Product details

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Abstract

In 2015, Revolut Ltd (Revolut) was founded by Nikolay Storonsky and Vlad Yatsenko in the UK, as a FinTech startup to disrupt the money transfer and exchange space. Noticing the unnecessary fees levied on the consumers and the recipients of remittance, Revolut offered unbeatable rates and zero charges for foreign exchange. With this business approach of eradicating hidden costs, Revolut had successfully raised more than USD800 million in the various funding rounds from the renowned entities and added a sizable base of 10 million customers in Europe and the UK by March 2020. In a major expansion move, in March 2020, Revolut officially launched its App and services in the US market, whereby customers could spend and transfer money globally, as well as hold and exchange 28 currencies in the app. But Revolut's US expansion came at the time when the country was undergoing economic imbalances triggered by the COVID-19 pandemic. At the same time, the US foray came with a unique set of challenges ranging from stiff business competition from well-established players to complex regulatory environments and different customer needs. However, unfazed with such challenges, in July 2020, Revolut launched crypto trading in the US and other services to lure the Americans. Amidst this scenario, would Revolut be able to become a household name and compete against the strong incumbents and strong challenger banks in the US market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Europe
Countries:
United Kingdom; United States

Featured company

Revolut Ltd
Employees:
1001-5000
Industry:
Fintech

About

Abstract

In 2015, Revolut Ltd (Revolut) was founded by Nikolay Storonsky and Vlad Yatsenko in the UK, as a FinTech startup to disrupt the money transfer and exchange space. Noticing the unnecessary fees levied on the consumers and the recipients of remittance, Revolut offered unbeatable rates and zero charges for foreign exchange. With this business approach of eradicating hidden costs, Revolut had successfully raised more than USD800 million in the various funding rounds from the renowned entities and added a sizable base of 10 million customers in Europe and the UK by March 2020. In a major expansion move, in March 2020, Revolut officially launched its App and services in the US market, whereby customers could spend and transfer money globally, as well as hold and exchange 28 currencies in the app. But Revolut's US expansion came at the time when the country was undergoing economic imbalances triggered by the COVID-19 pandemic. At the same time, the US foray came with a unique set of challenges ranging from stiff business competition from well-established players to complex regulatory environments and different customer needs. However, unfazed with such challenges, in July 2020, Revolut launched crypto trading in the US and other services to lure the Americans. Amidst this scenario, would Revolut be able to become a household name and compete against the strong incumbents and strong challenger banks in the US market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Europe
Countries:
United Kingdom; United States

Featured company

Revolut Ltd
Employees:
1001-5000
Industry:
Fintech

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