The Big Tech Show
00:12:19 · Adrian Weckler, Nik Storonsky
[00:12:19] S1: In considering that, what kind of models would you look at? Like The States, they have things like rocket mortgages and models like that. Is there any model you're thinking of, if you were thinking of mortgages? [00:12:31] S4: I think it's it's gonna be two models. Right? The one is mortgage financed by us as a bank or or be like a mortgage introducer or it can be a combination. But ultimately what we want to build, we want to build a frictionless experience for people and a 100% digital. So can, you you know, within the app you apply for for the mortgage, you select the house that you want to buy and then you get it, you know, at the same time. Right? So everything is instant and automated. [00:12:56] S1: Now, I mentioned that Ireland is your second biggest market after The UK. Do you think you get a benefit still in Ireland from how poor the traditional Irish banks tech is? The apps, the user interface? [00:13:09] S4: Yeah, definitely. Obviously, know, one of the reasons why we're so popular in Ireland because you know banks are not good there. [00:13:14] S1: Yeah, yeah. I mean, if there's a lot of complaints if you open one of the leading banks apps on a tablet for example like this iPad, it's vertical and not horizontal, basic stuff like that. How much of a difference do you think ease of use and user interface makes when using an app of...
00:13:14 · Adrian Weckler, Nik Storonsky
[00:13:14] S1: Yeah, yeah. I mean, if there's a lot of complaints if you open one of the leading banks apps on a tablet for example like this iPad, it's vertical and not horizontal, basic stuff like that. How much of a difference do you think ease of use and user interface makes when using an app of... [00:13:30] S4: I think it's a massive, right? Because we we we got used to think about the bank as some kind of in a building where you go to get something what you want, but reality in the end banking is a software business, right? Everything should be automated and be provided instantly, efficiently and like autonomously from people. [00:13:49] S1: Now I know you're waiting on licenses in countries like The UK, Brazil, Australia, Mexico, I think The US as well. For now, are you happy that the Lithuanian license that you have is enough for a Europe wide financial services app? [00:14:06] S4: Yeah. For now, what we're done with Lithuania last, we actually branched out in every single country in Europe. That means we also regulated as a bank in every single country in Europe by a local regulator. So, you know, so far it's enough. [00:14:17] S1: And would you seek any other European licenses? I know you're waiting on a UK one. [00:14:23] S4: I mean, for for now we are not really working on it but, you know, maybe if things change, you know, we might. Mhmm. [00:14:29] S1: Now you sold an Irish license, and the Central Bank took thirty months sitting on it, and you walked away. Were you frustrated by that? Well, ultimately,
00:14:29 · Adrian Weckler, Nik Storonsky
[00:14:29] S1: Now you sold an Irish license, and the Central Bank took thirty months sitting on it, and you walked away. Were you frustrated by that? Well, ultimately, [00:14:41] S4: when we applied in Ireland, right, we applied for it for Brexit. Right? And because it wasn't ready in time for Brexit, we used our Lithuanian license. So then by the time Irish license was ready, already rolled out and branched out the bank out of Lithuania in every single country. And then we just, you know, thought, okay, what is beneficial for Irish customers? Obviously, you we can use Emania license Irish in Ireland for Irish customer, but then they don't have customer protection, and then they don't have access to all the pros that we have on on the bank. So it made sense to just to branch out the bank in Ireland. So it was more like cost benefit analysis for customers. [00:15:18] S1: Okay. Did that have any effect on plans for the Irish operation? Did you No. I mean, scale down? [00:15:25] S4: No. Really, we didn't because we we should transfer majority of people in Ireland to in the in the in bank. [00:15:30] S1: But in terms of the Irish office, think there's a 130 people employed. [00:15:34] S4: No, mean, majority of that they were transferred in the in the in bank. So if you look at our CEO for for the bank, he's actually used to be CEO for Ireland. Mhmm. [00:15:43] S1: And do you have any plans now for the Irish office? [00:15:48] S4: Plans? I mean, we were always hiring, you know, people. But in terms of licenses, I think in a way we we are set in Europe at the moment.
00:15:48 · Nik Storonsky, Adrian Weckler
[00:15:48] S4: Plans? I mean, we were always hiring, you know, people. But in terms of licenses, I think in a way we we are set in Europe at the moment. [00:15:55] S1: Now you've a new spend from crypto feature as well and I think you've doubled the number of crypto users in Ireland in the last year and I read that one in five Irish Revolut users actually trades How important is crypto to Revolut? Is it any more or less profitable than any other parts of the business? [00:16:15] S4: I mean, it used to be, you know, obviously very good last year. This year is a very small portion of our business. But I think as a product, it's still amazing. We're still kind of investing a lot of resources into, you know, building it, improving it. And then hopefully, you know, one day it will be a very large part of the financial system. [00:16:35] S1: Mhmm. Now I was in The US for the last two weeks and I was traveling with friends and when it came time to share bills, I asked them to Revolut me. Now neither of them had actually heard of Revolut but one of them actually downloaded the app and transferred money to me no problem. The other couldn't. It failed at the setup phase. How big of a challenge or an opportunity is The US for you? I mean, The US is huge bucket. Mean, obviously, [00:17:01] S4: we'll try as much as we can to win it. And then problem with The US is that it's it's also in a very fragmented in terms of states. And there are lot of banks in The US, so thousands and thousands of banks and also, you know, quite difficult to
00:17:01 · Nik Storonsky, Adrian Weckler
[00:17:01] S4: we'll try as much as we can to win it. And then problem with The US is that it's it's also in a very fragmented in terms of states. And there are lot of banks in The US, so thousands and thousands of banks and also, you know, quite difficult to [00:17:15] S1: receive license. Just going back to the general mission for for Revolut, is the goal here for me to use Revolut as my everything bank? [00:17:27] S4: As everything related to finance, yes. That's the goal. [00:17:30] S1: Okay. What do you mean by that? [00:17:32] S4: Well, what you need in terms of money, right, you have one up. Whether you invest or spend or borrow or lend? Yeah. That's a goal. [00:17:42] S1: Lastly, last question. Yeah. The Irish banks going back, they seem a little bit worried about Revolut. Every time I talk to them, they're always talking about Revolut. They're right to be worried? [00:17:53] S4: Well, think you know obviously we were providing the better products for better prices and we were competing with them. So as a competition, yes, they should be worried. [00:18:03] S1: Okay. Nik Storonsky, co founder and CEO of Revolut. Thank you very much and that's all we have time for this week. From me, Weckler in The Big Tech Show. I will talk to you same time next week. Bye bye.