Tag: #finance

Two thirds of businesses believe ‘legacy banks’ are too slow to adapt to modern business needs — Revolut

Revolut Business, the global financial superapp trusted by hundreds of thousands of businesses worldwide, has conducted a study in partnership with market research firm Dynata, highlighting that international businesses are turning away from ‘legacy banks’ to manage their financial needs, echoing the sweeping changes seen across consumer banking. The findings come as the company launches Revolut Business 5 — the fifth generation of its financial management platform for businesses.

The recent survey of 2,850 business decision-makers from seven European countries, including respondents from every county in Ireland, found that close to two thirds (63%) of businesses believe ‘legacy banks’ are too slow for their financial needs.

Nearly four out of five (79%) respondents reported issues with ‘legacy banks’, including high fees, slow transactions, and poor mobile experiences, and three out of five (64%) large businesses are worried they will be left behind competitors without enlisting a fintech.

These concerns are driving businesses to fintechs like Revolut, where innovation and agility are founding principles. Revolut is reinforcing its focus to support large enterprise clients with Revolut Business 5, which provides an enhanced user experience across both mobile and desktop platforms to meet the evolving needs of industry leaders. Revolut Business has been redesigned to save enterprises more time and money.

James Gibson, General Manager at Revolut Business, commented on the recent survey findings and emphasised Revolut Business’s capabilities: “When we started Revolut Business in 2017, we knew that businesses wanted a banking product that evolved with their needs and provided a customer experience you’d expect in this day and age. The demand for customer-orientated business accounts has only increased since then.

“As we launch Revolut Business 5, we know we’re giving customers the ability to find features faster, spend with precision, and manage payments easily. Revolut Business is continuing to grow, and look forward to welcoming more customers who are fed up with the existing status quo in Ireland and want a solution that moves with the technology of the day.”

In Ireland, specifically, the survey also found that:

  • 72% of business leaders believe that ‘legacy banks’ are too slow to adapt to modern business needs, notably much higher than the European sample size average of 64%.

  • More than half (52%) of businesses use the services of a fintech, while a further 30% are willing to trust and are actively looking to use a fintech to manage their finances.

  • A quarter (25%) of hospitality businesses and close to one in five retail businesses (19%) now no longer use a traditional bank in Ireland.

  • Looking outwardly, more than three-quarters of business leaders (77%) said they were seeing more industry peers turn to fintechs for their business banking needs, while 81% of these already use a fintech provider (such as Revolut) personally outside of work.

  • Notably, nearly a third (31%) of business leaders in Ireland would prefer to manage their business’ financial needs solely with their fintech provider.

Revolut Business 5 offers faster navigation, personalised layouts, and easy access to card details and analytics right from the home screen. Updated features notably include B2B SEPA Direct Debits, streamlined payment tools for online and in-person sales, dedicated treasury tools for currency exchange, and multi-layered approval options for managing team spending across departments.

Revolut Business is already contributing 15-25% of the company’s overall gross profit, with some of Revolut’s notable customers in Ireland including Aer Lingus, O’Neills, and DID Electrical. The company also recently announced that global annualised revenue for Revolut Business has surpassed $500M (€461m). This growth is a testament to the demand for Revolut Business, as more companies turn to digital banks for a faster, more flexible way to manage their financial needs.

For more information, please visit: www.revolut.com/business

Revolut enables Tap to Pay on iPhone for business and freelance customers in Ireland

Revolut, the global fintech with more than 45 million customers worldwide and over 2.8 million in Ireland, today announced that it has enabled Apple’s Tap to Pay on iPhone contactless payment acceptance technology for Revolut Pro and Revolut Business customers across Ireland.

With Tap to Pay on iPhone and the Revolut iOS app, designed for customers with a Pro account, such as sole proprietors or small business owners, or the Revolut Business iOS app for business of all sizes, Revolut customers will now be able to accept in-person, contactless payments with just an iPhone – no need for additional terminals or hardware. The feature provides an easy way for merchants to accept payments from contactless debit and credit cards, Apple Pay and other digital wallets that enable contactless transactions.

For payments to be accepted, customers simply need to hold their contactless card or payment device near the merchant’s iPhone until the transaction is complete, just as with a traditional contactless payment terminal. Apple’s Tap to Pay on iPhone technology uses the built-in features of iPhone to keep both business and customer data private and secure. 

Revolut Pro and Business customers can start using Tap to Pay on iPhone directly within the Revolut app or the Revolut Business app. New customers wishing to use Tap to Pay on iPhone can do so by downloading the Revolut app or the Revolut Business app on the Apple App Store using an iPhone XS or later running the latest iOS version. From there, they can sign up with a Revolut Pro or Revolut Business account directly within the app to start accepting contactless payments within minutes.*

James Gibson, GM of Revolut Business: “Since 2017, Revolut Business has been providing hundreds of thousands of business customers around the world with a comprehensive platform to manage business finances effectively. We are excited to be amongst the first to enable Tap to Pay on iPhone for our business customers in Ireland and to be providing this simple and secure solution that offers greater flexibility for accepting payments. We are continuously expanding the benefits of the Revolut Business platform, and this is another great tool to support customers to do business seamlessly.”

Alex Codina, GM of Merchant Acquiring at Revolut: “Our ambition in Merchant Acquiring is to provide customers with the products and services they need to accept payments in a secure and convenient manner. The launch of Tap to Pay on iPhone allows us to offer greater choice for both consumers and merchants in Ireland. We expect to see all kinds of businesses, from retail stores to barbershops and food stands, quickly start accepting in-person contactless payments with only an iPhone.” *Terms and Conditions apply.

Some contactless cards may not be accepted. The Contactless Symbol is a trademark owned by and used with permission of EMVCo, LLC. Tap to Pay on iPhone is not available in all markets.

Surge in young investors across Ireland and the EEA

New data from Revolut’s European-licensed investment firm has identified a considerable increase in the number of young investors across both Ireland and the EEA more broadly. Young millennials and Gen Z are beginning to invest at a much younger age than any generation before them, according to internal data from Revolut. The global financial app has more than 45 million retail customers globally, over 30 million across the EEA, while over 2.8 million people are Revolut customers here in Ireland. The company’s Investment services across the EEA are provided by Revolut Securities Europe UAB. 

Younger investors, defined as those aged 18-34, now make up over 57% of Revolut’s investment customers in Ireland — only slightly below the company’s pan-EEA average of 62%. Notably, one in every four of Revolut’s EEA-based customers who started to put money into the investment firm in the first half of 2024 said they were new to investing. In addition, the amount of investors aged 18-34 in Ireland has risen considerably by more than 17% when comparing the first two quarters of 2024. 

Investments into Money Market Funds (MMFs) through Revolut’s Flexible Cash Funds service, which launched earlier this year, made up nearly two-thirds (62%) of the country’s youngsters’ investment portfolios. Other financial instruments, such as stocks and ETFs, accounted for 16% respectively, while bonds were traded by just 6% of young investors in Ireland. 

The average portfolio size of all of Revolut’s investing customers in Ireland is more than €2,600. When compared to the company’s EEA-wide average of just over €4,000, it’s clear that Ireland’s appetite for investing versus other member states still lags behind its European peers. 

Revolut’s youngest investors, defined as those aged 18-24, tended to start out by investing much smaller amounts in Ireland — with the average size of their portfolios around €400, while those aged 25-34 typically had around €1,300 invested. 

In terms of the most popular assets among 18-34-year-olds, most recently in July, the most-traded US stock (measured by the most bought and most sold assets) was the fluctuating American tech giant Nvidia, currently dominating the markets owing to its recent advances in artificial intelligence (AI).

Meanwhile, the most bought ETF in Ireland was the Vanguard S&P 500, while the most sold was the Dow Jones Global Titans 50 index. The top moving EU stock (both bought and sold) was German battery manufacturer VARTA AG. 

Rolandas Juteika, Head of Wealth and Trading (EEA), said: “The unprecedented level of interest in investing among our younger customers marks a significant shift in the financial landscape. This generation is much more involved in finance, with a strong focus on education. Revolut is a helpful tool for Irish investors looking to build up their knowledge and confidence in investing. Our app features courses, trading alerts, company performance information, and up-to-the-minute market news.” 

Revolut offers a wide array of investment options for its customers across Ireland and the EEA, with over 3,000 financial assets (US and EEA stocks, ETFs, corporate and government bonds) available within the Revolut app. Investing in stocks and ETFs is commission-free within customers’ plan limit allowance. Other fees may apply. 

Revolut also offers a Robo-Advisor service, which is best-suited to customers who have limited or no trading experience or simply don’t have time to do extensive research. In contrast, for more experienced traders, the company has a Trading Pro subscription — this paid plan offers pricing benefits (such as lower commission fees and higher order size limits), as well as additional analytics features. This pairs well with Revolut’s sophisticated in-app investing tools, which are designed for both beginners and professionals alike. 

Maurice Murphy, General Manager at Revolut Bank UAB – Ireland Branch, added: While our savings account ensures Irish savers can get a really good return on their deposits, this data shows that our customers’ are embracing these additional options to further diversify and build their wealth. Investing needn’t be overly complicated, nor should it only be for the wealthy or the more-experienced. At Revolut, we’re eager to help and encourage the next wave of investors and support their respective financial journeys — while also providing Ireland’s more-experienced traders with the sophisticated tools that they need.” 

European-licensed bank Revolut was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year. 

Revolut’s investment services in the EEA are provided by Revolut Securities Europe UAB, an investment firm authorised and regulated by the Bank of Lithuania. This information is not investment advice, recommendation or offer to take any investment decision and is supplied for informational purpose only. As with all investments, capital is at risk and returns are not guaranteed. The value of investments can go up and down and returns may be affected by currency fluctuations. For further information, please see Revolut’s Trading Terms and Conditions.

Two-thirds of consumers in Ireland spent abroad this summer

Revolut, the European-licensed bank with more than 45 million customers worldwide and over 2.8 million in Ireland, has analysed which travel destinations have proven most popular this summer among its customers in Ireland — with their overseas spending trends assessed as part of a detailed analysis of the period 1st May – 31st July.

The data has revealed that (in order) Spain, Portugal, France, and Italy were Irish holidaymakers’ most popular holidays this summer — with the United States also among Revolut customers’ most sought-after destinations as per their overseas spending habits. Notably, more than half a million Revolut customers also spent money in the UK this summer.

Revolut customers’ preferred destination within mainland Europe was Spain (over 300,000 holidaymakers). This was followed by Portugal (more than 100,000 jetsetters) and just short of that, France. Elsewhere, over 85,000 Irish tourists spent money in Italy and close to 65,000 ventured to the United States.

Approximately two-thirds of Revolut’s 2.8 million customers in Ireland spent money abroad this summer — while the global financial app also recently identified a move toward the return of staycations among its Irish customers, resulting in a record July of domestic consumer spending.

Close to 1.5 million Revolut customers from across the world visited Ireland this summer too, with those from the United Kingdom, Poland, Spain, Romania, Italy, and France accounting for over 80% of those visiting the Emerald Isle.

Maurice Murphy, General Manager at Revolut Bank UAB – Ireland Branch, said: “Our customers in Ireland depend on Revolut for the best foreign exchange rates, and we know that those extra savings on every transaction can amount to a more enjoyable holiday. We’re continuing to bring customers new products and perks to make the experience of going away more seamless and stress-free. For instance, customers can now opt-in to earn RevPoints on their everyday spending, which can then be exchanged for airline miles via two popular loyalty programmes.”

European-licensed bank Revolut was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.

For more information, visit: www.revolut.ie

Revolut announces secondary share sale to provide employee liquidity

Revolut, the global financial technology company with over 45 million customers worldwide, has signed agreements with a group of leading technology investors to provide liquidity to employees through a secondary share sale at a $45 billion valuation. 

This secondary share sale allows current employees to capitalise on their contribution to Revolut’s growth, while attracting a diverse mix of both new and existing investors. The round was led by Coatue, D1 Capital Partners, and existing investor Tiger Global. 

This valuation reflects the strong financial performance recorded by the company in recent quarters as well as the progress made in executing its strategic objectives. In 2023, Revolut reported revenues of $2.2 billion (a year on year increase of 95%) and a record profit before tax of $545 million. The company has continued its impressive trajectory in the first half of  2024, recording an annual increase in revenue of above 80% as well as improved profitability. Revolut is now the fastest growing finance app in 19 markets, and is on track to surpass 50 million customers by the end of 2024. 

This latest development builds on the momentum Revolut has gained throughout the year. The company secured a banking licence in Mexico, followed by the granting of its UK banking licence (Authorisation with Restrictions) in July, an important step in the company’s continued expansion both in the UK and globally. Additionally, Revolut announced the launch of several new products including the RevPoints Loyalty Programme, eSIMs, and the Revolut X crypto exchange. 

Nik Storonsky, CEO of Revolut, commented: “We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success. It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe. We’re also excited to partner with several new investors who share our vision as we continue our journey to redefine the banking landscape as we’ve known it.” 

“We have a high level of conviction in Revolut’s mission to democratize access to financial services globally,” shared Philippe Laffont, Founder and Portfolio Manager, Coatue. “Revolut’s proven ability to scale across dozens of markets is a testament to the team’s commitment to product velocity, financial inclusion, and financial innovation. Under Nik and 

his team’s leadership, Revolut has navigated the complexities of the financial services landscape to deliver an impressive product suite that meets the needs of its rapidly growing customer base. We look forward to supporting Revolut as it continues to help transform the global banking industry.” 

Morgan Stanley served as sole placement agent on the transaction. 

Revolut Report: Stats indicate a return to Irish staycations this summer

Revolut, the European-licensed bank with more than 45 million customers worldwide, and over 2.8 million in Ireland, has crunched the numbers on Irish consumer spending over the last month, with the app’s own data revealing that a return in the popularity of staycations led to a record month of Revolut spending in Ireland this July. 

Revolut’s consumer spending analysis tracked more than 58.5 million card payments over the course of the month, indicating several real-world spending trends by the country’s Revolut customers. The amount Revolut users are spending with the bank each month continues to rise, up nearly 5% (MoM increase) in July, with staycations a key driver in the broader uplift.

With a scorching heat wave across much of mainland Europe in July, a rising number of Revolut’s customers in Ireland chose to stay put for their summer break rather than go abroad. 

In terms of accommodation, spending on hotels and resorts in Ireland has risen by 15% compared to last summer (YoY increase), while Revolut customers are spending more than 38% more (YoY increase) on health and beauty spas compared to this time last year too. For those looking for a slightly more outdoorsy or cost-effective alternative, the amount spent on camping sites and caravan parks has seen a more than 14% jump in July 2024 versus July 2023 (YoY increase). 

When making their way around Ireland, Revolut has seen customers increase their spending at service stations, nearly 19% more this July than last (YoY increase), and on EV (electric vehicle) charging, which has risen considerably by over 46% since last summer (YoY increase). Staycations have also driven a surge in toll charges, with customers spending over 33% more to get to their destination faster than in July 2023, highlighting an uplift in domestic tourism. 

At their journey’s end, Ireland’s staycationers are spending more in local bars, cafes, and restaurants, up close to 5% (YoY increase), with other leisure activities such as tourist attractions and museums rising by nearly 18% (YoY increase) and boat rentals by over 25% (YoY increase). 

Maurice Murphy, General Manager at Revolut Bank UAB – Ireland Branch, said: “Once a trusted travel card, this record month of spending clearly indicates our evolution into many customers’ preferred bank and why we’re a mainstay for the people of Ireland. Revolut’s ecosystem of financial products is the answer for people whether at home or overseas, and helps them make the most out of their money. It’s so great to see our customers choosing to spend on their staycation with us, while others are doing the same as they jet off abroad too.” 

European-licensed bank Revolut was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year. 

For more information, visit: www.revolut.com/en-IE 

Fenergo and Deloitte join forces to deliver greater efficiency through client lifecycle management automation

Fenergo, the leading provider of digital solutions for Know Your Customer (KYC), Transaction Monitoring (TM) and Client Lifecycle Management (CLM), and Deloitte Ireland, have announced an agreement to deliver Fenergo’s AI-powered CLM solutions to financial institutions across EMEA.

The alliance combines Fenergo’s best-in-class technology with Deloitte’s technology-enabled business transformation expertise to create a Centre of Excellence for CLM

The alliance responds to increasing demand for optimised digital client onboarding and the need to drive efficiency across KYC and AML operations. Fenergo’s research has found that slow and inefficient onboarding processes have caused nearly half (48%) of global financial institutions to lose clients. To address this challenge, Fenergo and Deloitte Ireland will deploy AI-powered Software as a Service (SaaS) CLM, which will digitalise client onboarding and lifecycle management journeys, and in turn accelerate the time it takes to generate revenue while enabling firms to better identify and mitigate risk.

“We’re excited to collaborate with Deloitte Ireland to deliver our AI-powered CLM solutions to financial institutions and corporates across EMEA,” said Matt Edwards, Global VP of Partnerships and Alliances, Fenergo. “With the unrelenting evolution of global regulation and the need for firms to simultaneously drive growth, the demand for our CLM solutions has risen exponentially and expanded beyond financial services. With the addition of AI, the transformative power of CLM is even more accessible and rapid. Our alliance agreement with Deloitte will enable us to accelerate implementation while helping firms build a more sustainable and compliant future, while delivering a step change in customer experience.”

“Transforming organisations by using AI is something we’re committed to in Deloitte. Our collaboration with Fenergo and the launch of our Centre of Excellence illustrates our focus on providing innovative technology solutions to our clients that drive competitiveness and efficiency,” said Graham Healy, Consulting Partner, Deloitte Ireland. “We believe our mutual clients will also benefit from our broader expertise across financial advisory, business change and target operating model services.”

Financial institutions will also benefit from Fenergo’s unrivalled Perpetual KYC capabilities which streamline and automate periodic KYC review cycles by continuously monitoring client profiles for risk using real-time data. Firms can also leverage Fenergo to more effectively manage ESG requirements in response to growing demand for sustainable and socially responsible investing.

Bank of Ireland Finance Announced as Exclusive Finance Partner of All-Electric Smart Vehicles in Ireland

Bank of Ireland Finance has been announced as the exclusive finance partner of the all-electric motor franchise Smart – with two new Smart electric vehicles (EVs) now available on the Irish market.

Both new cars, the Smart#1 and Smart#3, feature a premium design fitted with advanced technology, with a range of both four-door and five-seater models available. The new Smart cars are exclusively distributed in Ireland by Motor Distributors Limited (MDL) and sold nationwide through their Smart dealer network.

Following a period of steady rather than spectacular EV sales performance over the past couple of years during market reconfiguration, interest in EVs and applications for EV financing are trending higher again with the latest Bank of Ireland figures revealing;

  • Used EV purchase applications up 125% in Q1 2024 compared to Q1 2023
  • New EV purchase applications up 41% in Q1 2024 compared to Q1 2023
  • Overall, 56% increase in EV purchase funding in Q1 2024 compared to Q1 2023
  • 9 out of 10 EV drivers move into another EV after their original PCP contract ends

Bank of Ireland Finance, which works with 23 motor franchises nationwide to provide low-rate APR offers for EVs, is the largest provider of wholesale finance for both battery electric and plug-in hybrid EV purchases. The EV market continues to evolve as the number of owners with range anxiety falls due to improved charging infrastructure, and awareness levels surrounding EV choice and value rise as motorists become more environmentally conscious.

John Feeney, Head of Property, Project and Asset-backed Finance, Bank of Ireland said: “It’s an exciting time for Smart to introduce these two new models to the Irish market, and Bank of Ireland Finance has an extensive range of flexible finance options available to customers looking to purchase a Smart car.”

 “The switch to EVs is an important part of Ireland’s overall green transition, and with more than €11 billion in sustainable lending already extended, and a target to reach €30 billion by the end of the decade, our focus is on helping consumers and businesses on their green journey. We look forward to supporting customers in making a plug-in or hybrid EV purchase as the market develops further and the sustainable motoring transition gathers speed.”