“Nik comes in waves", depending on how passionate he is about a project, says one of Nik’s key lieutenants. The Nik in question is Nik Storonsky, the co-founder and CEO of Revolut, Europe’s most valuable startup.
The key lieutenant is James Gibson, general manager, Revolut Business.
For many people, Revolut is the bullet train UK retail neobank, launching products left, right and centre, sticking two fingers up at banking conventions, orchestrated by the Pied Piper-like figure of Storonsky.
But the $75bn-valued Revolut is also a business bank, with hundreds of thousands of business customers, from startups to big businesses and, says Gibson, it’s not beyond the realms of possibility that Revolut Business could be bigger than its retail banking arm in the future.
Pouring cold water on Tech.eu's suggestion that Revolut’s retail arm will always remain supreme, Gibson points out: “For a lot of banks globally, the business banking arm is much bigger than the retail banking arm.”
Gibson, a former management consultant who joined Revolut in 2017, is in a chipper mood, speaking over video, enthusing about recent and future product launches and account wins, rhapsodising about the potentially “huge” US market, while telling Tech.eu that Revolut has preserved its startup culture despite its 10,000-plus-sized global workforce.
Furthermore, Gibson’s mood is likely buoyed by Revolut moving into new glitzy London headquarters.
Some facts and figures
Revolut Business, as it’s called, launched in 2017 (two years after the launch of Revolut) and now accounts for between a growing 15 and 20 per cent of Revolut’s £3bn plus annual revenues.
Over 500,000 businesses are using Revolut Business, which, at its core, offers local and international money payments, FX, and spend management features- though the product offering is tailored to different markets.
For example, in the UK, the focus is balanced between payments, FX and spend management, while in the US, Revolut is more focused on payments and FX.
Revolut, which has over 60 million customers, says Revolut Business is ripping, adding more than 20,000 companies on average a month.
Global operations
Revolut Business operates in the UK, across the EU, the US, Singapore and Australia, with its biggest markets being the UK, Ireland, France and Italy. Its customers include Aer Lingus, Deel and CreditSpring.
In its early days, Revolut Business’s customer base swayed towards startups, says Gibson, but it's attracting bigger businesses as well.
Being a retail-business combo bank is a definite plus, adds Gibson, saying a “significant chunk” of its business customers are existing retail customers.
Another plus is that, unlike in retail banking, where opening up multiple accounts is largely hassle-free, opening up multiple business accounts is hassle-filled, a chore which, Gibson says, means that more than 50 per cent of Revolut’s business customers are primary account holders.
European differences
One of the biggest challenges facing Revolut Business is local market integration, says Gibson, an articulate Oxford University graduate, who estimates that Revolut’s product teams spend between 60 and 70 per cent of their time on this.
This includes, for example, making tax payments in specific countries, account integrations with specific local platforms, or launching different treasury products in different markets.
Earlier this year, Revolut, which has a Lithuanian banking licence, which it passports across the EU, said it was applying for a French banking licence, which Gibson said will “strengthen its presence in France”, but will not lead to a “massive change” in product direction.
US plans
Judging by the lack of Revolut press releases touting its US exploits, it could be argued that the US has hitherto not been a priority for Revolut.
However, reports have recently emerged that Revolut is ramping up its presence in the US, and it recently announced it is investing over $500 million in the US over the next three to five years.
Observers point out the likelihood is, though, for Revolut to achieve success in the US, which is heavily credit-based, it would likley need a US banking licence, either getting one itself or getting one via an acquisition. Revolut has previously tested the waters on getting its own US banking licence, but has not applied for one.
Gibson, who has previously worked for Revolut in the US in its New York office and served as Revolut’s business development manager, said: “The US could be huge. We are by no means dominating there yet, but it remains a priority for us.”
UK banking licence
Most business banks make their money through offering credit products but Revolut has yet not offered any pureplay credit products in Europe.
“Our customers who need credit are going elsewhere, such as high street banks,” says Gibson, when asked if not having a UK credit offering was damaging.
The UK, which is Revolut Business’s biggest market, would be an obvious bet, should it successfully exit the mobilisation stage of its UK banking licence application.
Gibson says: “We are aware that it is something we want to get into in the longer term.
“In the longer term, we want to move to offering credit, and milestones like achieving a banking licence will definitely help us achieve that in the longer term.”
Hardware
While online banking remains Revolut’s bread and butter, Revolut has made gentle steps into payment hardware, as it looks to take on the likes of SumUp and Square.
It has launched payment terminals for larger businesses and retailers.
Over 100 of the quick-to-set-up terminals were deployed at the Primavera European music festival, and the tech meant that festival goers could make payments irrespective of the quality of the festival's WiFi.
Revolut has also launched card readers for shops and restaurants which means customers can make card payments via the reader and use services such as chip & pin, contactless, Google Pay and Apple Pay.
Relationshp with co-founders
Gibson, who is 35, says that one of the triumphs of Revolut is that its co-founders, Storonsky and Vlad Yatsenko are still “ very hands on” with the business, giving it “continuity”, in contrast to say the founders of Monzo and Starling who have left.
He says: “Nik, you know, comes in waves. Sometimes when he is particularly interested or passionate about a project, he is a bit more hands-on, and at other times a bit more hands-off off and we get on with it.
“They are still very much involved. I speak to them regularly. I am speaking to Nik in an hour about giving him an update about what we have been up to.
“Nik is someone who pushes us all a lot to achieve a lot. The core of the company culture has stayed broadly similar. But we have definitely matured as an organisation over that time.”
Combating fraud
Fraud is an ongoing issue faced by banks of all stripes. A BBC Panorama programme last year named Revoluts in more fraud complaints than any other major UK bank, naming it in nearly 10,000 fraud complaints in one year.
One customer, who had £165,000 stolen from his Revolut business account, said Revolut's security measures failed to stop the theft after finding there was no helpline to call and having to wait more than 20 minutes for support via a chat function in the app.
Revolut says it invests a lot of money trying to combat fraud, estimating that in 2024 it saved customers £600m worth of fraud.
Gibson said: “I can tell you personally I spend a lot of time working with our teams in ways we can help our customers spot fraud early and make sure they don’t fall victim to it.”
New products
Recent launches and wins include new European marketing campaigns, several airlines using Revolut Pay, and Audio F1 using Revolut Business as part of a big sponsorship tie-up.
Famed for its rapid NPD, Gibson, who, during the interview, is fair game and doesn't swerve questions, said there will be more Revolut Business product launches coming soon.
Would you like to write the first comment?
Login to post comments