Revolut's 'new bets' model runs small teams of about ten people like micro startups that own their profit and loss, letting products be shut down or scaled quickly.
Tom Matsuda says Revolut must lend more, including mortgages and business loans, to keep growing because most of its revenue comes from fees like interchange and trading.
Revolut took over three years to win its UK banking licence, after auditors criticised parts of its revenue profile and regulators demanded stronger evidence on compliance, governance and capital.
Revolut's startup-style teams drive its push into full banking
Revolut is turning from a payments app into a full financial super app and bank. It moves faster than European rivals because it runs as many startup-like teams under a demanding founder. Fee income alone may not sustain growth, so the UK licence, mortgages and business lending are the next test.
Takeaways
Small startup-like teams drive Revolut's product pace. Under the new bets strategy, teams of about ten people, often led by founder-like figures, build products as micro startups and own their profit and loss. Products can be shut down or scaled fast across a company of about 10,000 employees.
Revolut has far outgrown UK neobank rivals. Users rose from around 10m in 2019 to more than 50m, with customer balances above $30.2bn. Revenue was about $3.1bn last year, roughly double Monzo's $1.2bn. Monzo has about 12m customers and Starling 4.6m.
Founder intensity shapes a demanding culture. Tom describes Nikolay Storonsky as relentless and focused on execution at all costs, with the culture set from the top. Cofounder and CTO Vlad Yatsenko is the human heart of leadership, more focused on developing individual employees.
The UK licence took over three years. Revolut is a large applicant, and the PRA needed evidence on compliance, governance, capital and operations. Auditors criticised its 2020 and 2021 revenue profile, and CFO Victor Stinger is credited with the fix. The licence came in July 2024 and Revolut is still mobilising.
Fee-heavy revenue pushes Revolut toward lending. Most revenue comes from fees such as interchange and trading, so growth likely needs business lending and mortgages. Lithuania, licensed since 2021, offers credit cards and tests refinancing mortgages. Ireland and France are earmarked, with five-minute remortgage pre-approvals targeted.
Super app ambition explains the product sprawl. Revolut wants to be a control centre for daily finances, which explains telecoms, eSIMs, travel bookings and pet insurance. Expansion also includes a planned Paris office and a deal for an Argentinian lender in a Latin America push.
Any IPO would be in the US. Storonsky has criticised the London Stock Exchange and says a listing would be American. There is no pressing need, given a funding round of about $1bn. Starling is also pushing into the US, possibly with a banking licence.
Signals to watch
Revolut is reportedly in talks to raise new funding at a $65bn valuation, and Storonsky could receive a large payout if the valuation reaches $150bn.
Klarna hired remote customer service teams after leaning on AI, which Tom reads as a sign of a glass ceiling for AI in financial services.
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On this episode 2
Show 1
Tom also follows Monzo, Starling, N26 and Klarna as the companies shaping European fintech.