Revolut Aims for 100 Million Customers with Billions in Investment

The British digital banking platform, Revolut, is making significant strides in the competitive banking sector by planning to invest EUR11.5 billion globally over the next five years. This initiative, announced during the inauguration of its new headquarters in London, aims to create approximately 10,000 new jobs worldwide. Revolut's ambitious goal is to reach 100 million private customers by mid-2027, positioning itself as a formidable rival to established players like N26 and Trade Republic.

Founded in 2015, Revolut initially focused on money transfers and currency exchange in the UK. Since then, it has expanded its customer base to over 65 million worldwide. The investments will primarily focus on core markets, with about half of the funding allocated to the UK, France, and the USA. Specifically, EUR3.4 billion is earmarked for the UK, while EUR425 million will target the US market.

Revolut's strategy also includes expanding its presence in Latin America, the Asia-Pacific region, and the Middle East. The company plans to enter more than 30 new markets by 2030, including Mexico and India. Additionally, Revolut is looking to enhance its offerings for business clients.

Despite its rapid growth, Revolut faces significant challenges in Germany, where it competes against well-established entities such as Trade Republic, the larger neobank N26, and traditional direct banks like ING and DKB. The German banking market is characterized by a fragmented landscape of private banks, savings banks, and cooperative banks, which complicates Revolut's efforts to gain market share.

Consumer behavior in Germany also poses challenges, as many individuals prefer to keep their savings in bank deposits rather than engaging in digital or stock market investments. Revolut has been operational in Germany since 2022 and has a presence in Berlin, where it is working to expand its team.

Currently, Revolut boasts around 2.5 million private customers in Germany, yet it acknowledges that the market is particularly tough. In contrast, the company has reported faster growth rates in France, where it recently announced a substantial investment in Paris.