Revolut strategy teardown

Can Revolut become the Amazon of banking?

New technologies have triggered a structural shift in the financial services sector. Fast-moving new challenger banks are leveraging technology to offer clients cheaper, convenient, and more transparent services. In this way, these new entrants are reshaping the pace of innovation across all parts of the value chain in financial services. However, most new entrants have not been able to establish themselves as sizable players. Many overestimated customers’ willingness to switch away from incumbents; others underestimated the high and increasing costs of customer acquisitions.

The Revolut story is different. The challenger bank is attracting around 10’000 new clients per day and has already built a client base of over 3 million users – all in just over 3 years and without any large marketing spend. The company has achieved this by disrupting the lucrative international transactions market. Revolut saves clients up to 6% of their purchases in foreign currencies because it offers clients access to the spot rates for foreign exchange transactions and charges them zero for transfers.

Looking ahead, the firm is set to expand its product offering and has already started its global expansion. In Switzerland, the company has already applied for a Swiss IBAN, and could therefore soon by competing directly with local retail incumbents for the loyalty of their prized Swiss clients.

It is in this context that we are delighted to host Revolut in Zurich on November 26th. This strategy teardown report is intended to offer Swiss business transformers a unique introduction to Revolut’s business strategy. We hope you enjoy the read.