Nik Storonsky, chief executive of neobank Revolut is on a mission to build “the world’s first truly global bank” while maintaining a loan book small enough to create almost no risk, he has told the Financial Times.

In an interview with Patrick Jennings, Storonsky said that the UK-based bank’s loan-to-deposit ratio currently sits around six per cent. This is significantly smaller than rivals both smaller and larger, which tend to maintain a ratio closer to 100 per cent, and is part of a strategy from the executive to “to have effectively zero risk for the business”.

Currently, the majority of Revolut’s income comes from fees and subscriptions, while interest income accounted for less than a quarter. Banking experts have previously suggested that this makes loans a relatively untapped market for the bank, should it wish to pursue them.

Storonsky has told the FT that this is not the strategy Revolut intends to focus on. “We don’t plan to have exposure of more than 10-20 per cent,” he said. Loans the bank does take on will be sold again in whole or through securitisation.

Financially speaking, the strategy appears to be paying off. Storonsky told the paper that Revolut’s return on equity is 40-50 per cent once excess capital is deducted, double the ratio of its best performing rivals. The bank is also considering its stock market debut in both London and New York at a valuation that could reach $200 billion within two years, according to the FT.

The success of the bank is also proof that startups can thrive in Europe, he said. Although it is more difficult to access capital, regulations are stricter and markets are more fragmented than in the US, the continent has “very good quality of talent […] which is actually much cheaper compared to […] the US, especially California”.

Despite strong numbers, and a rapid international expansion this year that seems to be continuing apace, the bank has faced a number of controversies in recent months. The FT revealed earlier this year that it had been temporarily curbed from deploying new products in Europe last year after shortcomings were identified in its approval processes.

Although the ban has since been lifted, the bank was embroiled in a data breach earlier in the month affecting nearly 700 clients after hackers impersonating Italian law enforcement tricked it into divulging the information.

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