How to Build an Entrepreneurial Company with Nik Storonsky of Revolut

Revolut's founder on hiring, speed and the coming bank consolidation

Revolut's Nik Storonsky argues that a challenger beats larger incumbents through people and speed. He hires self-directed people with character, builds reusable platform parts so products ship fast, and outworks bigger rivals. He expects the same pressure to push banking into heavy consolidation, with a few large regional players holding most of retail.

Takeaways

• Revolut hires for character and drive, not skill. Storonsky calls hiring mathematics, since every hire costs management time. He wants exceptional, self-directed people who have broken seemingly impossible barriers. Skill is secondary because it can be learned in one to two years, and he acts more like a coach than a manager.
• Modular platform and playbooks make launches fast. Revolut releases products quickly by reusing modular platform components and defined playbooks instead of building each product from scratch. Combined with a willingness to try things, this lets a one-app offering span accounts, transfers, lending, investing and crypto and stock trading.
• Most small and mid-sized banks will not survive. Storonsky predicts that within five to ten years consolidation dominates. Five or maybe ten large regional players take about 80% of the retail market, and thousands of smaller fintechs are not sustainable.
• Smaller challengers must outwork larger rivals. A company competing with bigger players needs to be smarter, faster and work harder. Storonsky's competitive streak came from his parents and from sport and chess since age five, and taught him that without effort you have little chance to win.
• Growth began slowly and survival was uncertain. Downloads started at one or five a day and spiked to 25 after a staff member handed out cards in a coffee shop. Revolut did no marketing for five years, relied on word of mouth, and nearly went bankrupt several times.
• Blockchain is promising, regulation is the main fear. Storonsky likens blockchain to earlier innovations such as Dutch stock issuance and British bonds, since it lets ordinary people act as market makers, borrow, lend and issue tokens. He fears excessive regulation because it adds overhead and stops companies innovating.
• Goals are achievable through defined execution. Storonsky says almost any goal can be reached with defined goals, metrics, a roadmap and repeated execution. To manage emotions he steps away from a problem for half an hour, and he takes week-long hiking or climbing trips to recharge.