Revolut intends to launch a credit card for its US users as early as the end of this year, as part of its strategy to make a strong impression in the overseas market.
This will be the first time that the digital bank will launch a credit card outside certain European countries, where it will be able to carry its Lithuanian banking license.
“[In] in the US we like our credit even more than in other countries, ”said Revolut US Managing Director Ron Oliveira. Financial news, speaking on the Barron Live Podcast. “This fall we will have an unsecured line of credit as a consumer retail product, as well as credit cards, but that won’t happen until the end of the year,” [or] first [quarter] next year.
Revolut first opened in New York in March 2020, although its major debut plans in the United States were quickly hampered by the global pandemic and multiple lockdowns.
The fintech company is targeting a reach of one million users in the United States by the end of 2021, as part of a major marketing blitz in the region. This would be one of the first successful debuts for a European digital bank in the market, with launches by Monzo and N26 yet to take off amid fierce competition from their local competitors.
READ Revolut to launch major US blitz as it targets 1 million users this year
The return to the office of financial companies around the world has been marked by the resumption of the pandemic, with cases skyrocketing as the Delta variant of Covid-19 spreads. Wall Street institutions, including Goldman Sachs and Citigroup, have pushed U.S. staff to get the shot, while some, like Vanguard, have offered financial incentives to get the shot.
In a broad interview, Oliveira said Revolut chose not to make the Covid-19 vaccination a return-to-work requirement at its New York, San Francisco and Dallas offices.
“We didn’t require you to be vaccinated to enter the office. What we followed is the CDC [Centers for Disease Control and Prevention] and its recommendations, ”said Oliveira, citing the requirements for wearing a mask and practicing social distancing. “We did not come across an official policy that goes beyond what the experts tell us. “
Revolut filed for a banking license application in California earlier this year, as part of plans to be able to operate independently from its U.S. sponsor bank, the Metropolitan Commercial Bank.
Oliveira said the bank welcomes the increased oversight as US regulators step up their spotlight on the fintech sector. Local fintech giants such as Robinhood have come under the microscope in recent months as service adoption has taken off amid growing demand for products like stock trading and cryptocurrencies, all of which are two offered by Revolut.
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“At first, regulators saw fintechs as too small to really worry too much about. Now they’re too big to ignore, ”Oliveira said.
“Regulators want to dig deep into fintech and see what regulatory additions they might need because… maybe in the future some of them might even be systemic risks that they want to make sure they are. are well watched. “
Revolut plans to launch its stock trading function in the United States in the coming months, Oliveira added, having accumulated around one million users of the product in Europe so far.
Revolut raised $ 800 million in new capital in July from new investors SoftBank and Tiger Global, making it the UK’s most valuable tech startup at $ 33 billion. Oliveira said the funding would be used to fund its growth plans in the United States and to pursue banking licenses in the United Kingdom, Singapore and Australia.
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