I lifted this from the Revolut website, looks like there is cover under the UK FCA scheme : https://community.revolut.com/t/now...ng-we-use-it-as-our-primary-bank-account/4427Emmm - I'm not sure that can be fully accurate. If Revolut holds client money at Barclays, it will be seen as a single customer and therefore each underlying Revolut customer would not be covered by the UK scheme - only Revolut up to the max for a single person. Unless they open individual accounts for each customer in that customers name (or identifying each customer) which I doubt if I'm honest.
We live in a funny world, look at Uber, WeWork, Peloton they are all loss making but yet they are used by millions. The aim of the game seems to be get as many users as possible and then work on profitability.
That's misleading. Individual Revolut deposits are not subject to UK deposit insurance. Revolut has been granted a banking licence in Lithuania which has not yet come into effect. If and when it does funds up to €100,000 will formally be covered by the Lithuanian deposit insurance scheme. However, that raises the question of how reliable that scheme would be if there was a multi-bank collapse in that country, which has attracted a large number of fintech companies. Lithuania is very small and still relatively poor. In time a European deposit insurance scheme might come into being but that still seems a long way off.I lifted this from the Revolut website, looks like there is cover under the UK FCA scheme : https://community.revolut.com/t/now...ng-we-use-it-as-our-primary-bank-account/4427
Revolut has been granted a banking licence in Lithuania which has not yet come into effect.
I lifted this from the Revolut website, looks like there is cover under the UK FCA scheme : https://community.revolut.com/t/now...ng-we-use-it-as-our-primary-bank-account/4427
Please re-read what I wrote. The banking licence has been issued but it's not yet operational, hence deposits are not yet insured.Revolut does have a banking licence in Lithuania. Look . It's been in effect for a year now.
Please re-read what I wrote. The banking licence has been issued but it's not yet operational,
hence deposits are not yet insured.
Sounds like 1999 all over again. I hope history isn’t going to repeat itself.
The "not yet operational" was my own wording which might differ from Lithuanian legal phrasing. It simply was a logical deduction: if operating with a banking licence means the institution is covered by the deposit insurance scheme and if for Revolut that scheme is not yet in effect, this would seem to imply that its banking licence is not yet fully operational (or "implemented" or "in force" or whichever wording you prefer). I'm afraid I'm not aware of the intricacies surrounding this.I spent a few minutes on the Bank of Lithuania website and it does not seem to make a distinction between licenses that are operational and those that aren't. It would be nice if you could clarify this.
I made no claims about this.
If you choose to open a full current account with Revolut Bank in the future, any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS).
It's worth pointing out that this scheme is not currently in place, so your current funds with Revolut remain safeguarded in accounts with a tier one UK bank, as per our obligations under the e-money regulations.
The aim of deposit insurance is to ensure protection of deposits in case of financial institution insolvency, thus contributing to the stability of the financial market and enhancing the public’s trust in financial institutions. In Lithuania, deposits are insured in the amount of up to EUR 100 thousand, when they are held with a bank, bank branch or credit union.
I am genuinely puzzled by this.
There are two licensed entities in fact, Revolut Bank UAB which is authorised to take deposits, and Revolut Payments UAB which has a to issue e-money, execute transactions, etc, but not to take deposits.
Is Revolut Bank Payments UAB the one you open an account with? As it is not strictly speaking a deposit-taking insitution it presumably wouldn't be covered by a DGS.
It might also be worth getting their definition of what a deposit is - is it money held anywhere in your Revolut Account, or only in a "vault" for example ?
You have to have a few thousand in your current acc to avoid charges, if you multiply this amount by the number of customer there s a tidy amount for them to investI am not sure that the banks make much if any profit on current accounts.
They do make it on FX transactions, so I suppose Revolut might affect them there a bit.
But they make most of their money on lending, and mortgages in particular.
Isn't Revolut hugely loss making? I don't know much about their business model, but it does not look sustainable to me.
Brendan
You have to have a few thousand in your current acc to avoid charges, if you multiply this amount by the number of customer there s a tidy amount for them to invest
Hello,
While I agree with the point that your making, let's not forget that we are comparing apples and oranges here, when we compare Revolut to "land based banks".
There are lots of things that our traditional banks can learn (and copy) from the likes of Revolut, but they'll never be the same.
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