Revolut, a leading fintech platform and start-up bank, has secured a private banking license to operate in Spain. User deposits are now insured up to 100 thousand euros, with coverage provided by Deposit and Investment Insurance, a Lithuanian state company. The company, which now has more than 800,000 customers in Spain, expects to increase its user base with this new development.
Revolut customers in Spain can upgrade to Revolut Bank
Revolut, one of Europe’s largest new fintech banks, has obtained a private banking license in Spain and can now offer deposit insurance to its clients. Deposited asset protection will be provided by a Lithuanian state company called Deposit and Investment Insurance, and will cover amounts up to 100,000 euros (about $115,000). To receive this protection on their assets, customers will have to upgrade their Revolut accounts to Revolut Bank accounts.
The strategy aims to keep Revolut growing in Spain after a survey last year suggested that more than 80% of users would deposit more money into the service if they were insured. In the same way, 60% indicated that they would use Revolut to settle payments if the platform offered insurance options.
Originating in the UK, Revolut has seen significant growth in Europe, which now has more than 18 million customers. The platform, which is commonly used around the world to make transfers and payments, arrived in the US last year.
Spain is not the first country where Revolut has applied for a banking license. It already offers this protection to customers in Belgium, Denmark, Finland, Germany, Iceland, Liechtenstein, Luxembourg, the Netherlands and Sweden, where it has also been able to offer credit products to its users. Regarding the insurance offer to its clients, Joe Hengan, CEO of Revolut Bank stated:
The launch of the bank in Spain will provide a higher level of security and confidence for our customers, and will allow us to launch more products and services in the future.
Revolut has also offered in-app purchases of cryptocurrency since 2017, integrating financial technology and crypto into one platform. One of its direct competitors in the field, N26, only recently announced the introduction of cryptocurrency trading, and lamented its delay in offering these services to clients.
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