UK digital bank Revolut eyes India with remittance service

BENGALURU: Revolut, a UK-based digital bank valued at $5.5 billion last year, plans to introduce instant worldwide money transfer to and from India at no cost as its flagship offering here, Nik Storonsky, co-founder and CEO of Revolut, told TOI. Revolut is in talks with RBI, local banks and fin-tech startups for the launch, as part of which it plans to offer border-less accounts to Indians which can be used across the US, Europe and Australia.
Storonsky said he would like to start this year as India is potentially a big market. The launch would depend on RBI giving the go-ahead, and its potential partnerships with local banks. The company was planning to be in India last year but the virus outbreak forced it to change those plans.
“We will initially focus on remittances as it is our strongest product. As soon as we get decent traction, we will offer other products, like insurance,” Storonsky said. “With border-less accounts, you are able to have local accounts in almost any country. For example, when you are an Indian and go to the US, you won’t need to use a local US bank account,” he said.
Similar to its global practice, it would eventually roll out ‘freemium’ plans, where one would have to pay a fee for certain services beyond a limit. Revolut, which has the backing of global investors like DST Global, plans to hire about 300 people here to manage operations, including some global operations. It is also in the process of selecting an India CEO. Currently, it has a team of seven in India.
Revolut’s India foray is part of an international expansion. It is also looking to enter countries like Indonesia, Philippines, and South Korea.
Started as a digital bank focused on millennials in the UK, Revolut is now transitioning itself as a financial superapp, which allows money transfer, investing in stocks, cryptocurrencies and other services.