Revolut costs drag bank into £15m loss
Written by Peter Walker
Revolut’s annual report has revealed £14.8 million worth of total losses after tax during 2017, as operational costs rose 52 per cent from the previous year.
These were largely attributed to costs associated with its card scheme, acquiring and user acquisition, as the mobile-only bank’s app trebled its customer base from 450,000 to 1.3 million.
The report also detailed plans for how the FinTech will deal with Brexit, with applications being made for e-money licences in Luxembourg, in addition to a previous application for a full banking licence in Lithuania.
Revolut currently operates under an e-money licence in the UK, through which it passports banking services to other European countries. While there are no immediate plans to apply for a full licence in the UK, the company confirmed it does not intend to move away from its London base unless there is a visible impact from Brexit on its ability to attract investment or skilled staff.
Between January and December 2017, Revolut increased its revenue by almost five times from £2.4 million to £12.8 million, on the back of increased monthly transaction volumes rising from $200 million to $1.5 billion.
The company’s workforce more than doubled to over 400 people, with expansion plans beginning into 10 international markets, along with work on a commission-free trading platform.
“Our growth is driven by putting the customer at the core of everything we do,” stated founder and chief executive Nik Storonsky. “In reality, we launched all of our money-making products through the course of that year, such as our premium accounts in April, business accounts in June and cryptocurrency trading in December.”
The report added that a key area of investment this year will be in hiring and training more customer support agents.
“While we doubled the number of our support agents last year and made our service twenty-four seven, we’ll look to again double the size of the team this year, and we’ll be opening a new customer support centre in a new European city by the end of this year,” added Storonsky.