Already working on obtaining Portuguese IBAN
Revolut, a financial technology company best known for its banking activity in the travel segment, plans to open a branch in Portugal and is working on obtaining a Portuguese IBAN, said the man in charge of the project, Rúben Germano.
In interview with Lusa, Germano said that for Revolut – which currently operates with a Lithuanian IBAN – it is essential to obtain a Portuguese IBAN in order to be able to operate in Portugal a banking model that is closer to that of institutions operating nationally, and to launch financial products such as personal loans.
“Our main objective is to fulfil all regulatory requirements,” he said, adding that the goal is to obtain the IBAN this year.
“We’re looking at all the regulatory analyses and all the reports we have to comply with – with credit cards another possible product to be launched.
As for capturing salary or term deposits, Germano said that this is on Revolut’s horizon, but not in the short term. He also conceded that it can be complicated to enter segments such as mortgage loans.
“There are products that we know are anchors in the market, like mortgages, for example,” he said, noting that banks “also defend these anchor products,” to which they “try to attach” others.
It is, he said, “more difficult” to fight the competition “without these products” – but he emphasised that Revolut is competitive in terms of prices and highlighted greater ease and speed as well as its transparency as advantages.
Asked about traditional banking customers’ doubts about this type of branchless bank with a strong technological focus, Rúben Germano recalled that Revolut is covered by the European Union deposit guarantee and has a banking licence in Lithuania.
“We’ve been a profitable company over the years,” he added, pointing also to the company’s growth.
Revolut’s global revenue (it does not disclose figures for each of its markets) in 2022 rose 45% to €1.1 billion and the group expects to turn over almost €2 billion this year.
In Portugal, the group has 1,300 employees, out of 9,000 globally.
NB. Anecdotal evidence suggests Revolut’s banking cards can be used “on the other side of the world” (namely the Far East), where typical Portuguese banking cards are often not recognised.
Source material: LUSA
