What happened?
Revolut, a major fintech company, has reported an annual profit surpassing $1 billion for the first time. The company’s net profit in 2024 reached £1.1 billion ($1.5 billion), a substantial 149% increase compared to the previous year. This growth is primarily driven by its wealth division and crypto trading resurgence, as well as significant revenue increases from subscription services and customer deposits.
Who does this affect?
This development affects Revolut’s 11 million customers in the U.K., who stand to gain access to new traditional banking products like loans and mortgages as the company transitions into a licensed bank there. It also impacts investors and stakeholders within Revolut, who benefit from the company’s growing profitability and valuation. Additionally, competitors like Monzo and Starling may feel the pressure as Revolut expands its services and market presence.
Why does this matter?
This surge in profitability and expansion into traditional banking highlights Revolut’s increasing influence in the financial market, potentially attracting more customers and investors. The company’s innovations in crypto trading through platforms like Revolut X position it as a formidable player against established crypto exchanges. As Revolut continues to grow and innovate, other fintech and banking institutions might need to adapt to compete effectively in an evolving financial landscape.