14 million British and eight million French customers are Revolut customers. In Germany, the digital bank is still small. Nik Storonsky wants to change that – he explains his strategy in an interview.
Paris. Revolut boss Nik Storonsky welcomes the Handelsblatt reporters at a construction site. Ventilation pipes and cables are exposed on the ceiling, and there is assembly scaffolding in the hallway. The floor is covered with building protection panels. There is still a lot to do at the British digital bank's new Western European headquarters in Paris before it opens in 2027.
The office is located between the Stock Exchange district, the historic center of the French financial world, and the Sentier district, home to many technology companies and start-ups. The new location is therefore also a statement - and a sign of the global expansion drive of Europe's most valuable fintech.
Storonsky sits on a couch on the second floor in a strict black suit with a red tie. Anyone who meets him for the first time is surprised by his casual handshake, his quiet voice and his almost shy demeanor. But during the conversation it quickly becomes clear that the 42-year-old does not lack self-confidence. Storonsky has big plans, especially in Germany.
Mr. Storonsky, you launched Revolut in 2015 as an app for paying while traveling. Today the bank has 80 million customers and is the most valuable European fintech. What is your secret to success?
This is similar to humanity's plan to eventually build a city on Mars. This doesn't happen from one day to the next; it takes many small steps. At Revolut, we have introduced many new products, obtained more licenses and penetrated more markets over the years. There wasn't one big breakthrough.
Revolut launched in the UK, where they now have 14 million customers, followed by France with eight million and Spain with six million customers. In Germany you are still relatively small with around three million customers. Why is that?
Germany has the highest cash usage compared to other Western European markets. That's why people are using digital banks less. German customers also attach great importance to German IBANs. We were only able to offer this account number from the beginning of 2024 when we opened a German branch.
How do you want to catch up in Germany?
We have been working for years to tailor our offering more closely to the German market. We have also simplified account opening. Initially, our customers had to go through video identification with an employee. The process was not entirely digital and could take up to seven hours. That wasn't a particularly good user experience. We have now accelerated the process.
Revolut has recently been advertising to German customers with a promotion – 4.25 percent on daily money for four months. Is this the beginning of a major offensive in Germany?
Yes. We are currently still disproportionately small in the German market and want to change that in the next few years. That's why we offer new savings and investment products. And we invest massively in marketing – both in digital campaigns and in traditional advertising. For example, since this year we have been sponsoring the Audi Formula 1 team.
You have set the goal of being the market leader in each of your ten core European markets by 2028. In Germany, Revolut is currently far behind the savings banks, which have around 38 million private checking accounts. Do you think it is realistic to become number one in Germany at some point?
We want to become number one in Germany – as quickly as possible. For a long time, our growth in the Federal Republic was weaker than some of our competitors. This quarter, however, we are in first place for the first time in terms of downloads of our app – ahead of the savings banks. Our growth in Germany is just beginning to pick up. In the future, Germany should become our largest market in Europe.
Experts also attribute the fact that their growth here has been weaker than in other countries to the fact that until recently Revolut only operated in the EU with a banking license from Lithuania. Was that a mistake?
We might have been able to explain this in more detail. We have always been doubly regulated: by the Lithuanian Central Bank and the European Central Bank (ECB). But many people overlooked this second part, including in the press. Because we have been classified as systemically important, we have been supervised by the ECB, a top regulator, since 2019. Consequently, it shouldn't really matter where the regulated bank is located.
But it obviously played a role for many people, especially in Germany. Revolut has recently received a banking license in France. Knowing today: Looking back, would you have tried to get a license in a large EU country sooner?
Maybe with today's knowledge. But you must not forget that in 2019 we only had 100 employees. We had little capital, limited management capacity and little access to experienced bank managers. At that time, going to Lithuania was logical because we could achieve the same result there with fewer resources.
Analysts point out that on average customers in the UK have fewer deposits with them than with the major British banks because they do not trust Revolut to the same extent. Even in Germany, you are not the main bank for the majority of your customers. Is a lack of trust still a problem for Revolut?
In many countries, we are the main bank for around 20 percent of our active users. This is less than established financial institutions, which have often been around for over 150 years and have built up a lot of trust during this time. We, on the other hand, are a newcomer. But it is only a matter of time before customers trust us as much as they trust the established banks.
What makes you so confident?
In Ireland, where we grew early and quickly, 80 percent of our customers already use Revolut as their everyday bank. We also put a lot of work into building trust. This includes showing presence in the physical world. We have set up our own ATMs in several countries and are opening representative offices, for example in Barcelona. We also spend a lot of money on advertising campaigns.
For some time now, Revolut has been offering services not only for private customers, but also for companies. What are your plans in this segment?
With our “Revolut for Business” offering, we now generate more than a billion dollars in sales per year across the group. We started with small and medium-sized companies, but we now increasingly serve large customers as well. In Germany this includes, among others, Delivery Hero.
What role do German medium-sized companies play in your strategy?
We see great growth potential in medium-sized companies. We have our own sales team in Germany that is dedicated solely to bringing our business account to German customers. Germany is the largest economy in Europe. That's why it's essential for us to win more business customers here. It's clear to me: If we want to win in Europe, we have to win in Germany.
Do you want to offer more complex products for corporate customers in the future and perhaps even get into investment banking? You yourself worked as an investment banker before founding Revolut
That is conceivable. In the future, we will increasingly turn to more demanding customers and large corporations. We already have a range of products on offer for you. In addition to our business customer account, this also includes our crypto exchange, which institutional investors can use to trade crypto assets.
Will you also open branches in Germany where you can advise corporate customers?
So far all of our offers are digital. But we are currently testing in a pilot project how physical representations are accepted by customers. The new representative office in Barcelona will have separate areas for business customers and wealthy private customers. If a customer would like an on-site exchange in addition to our digital offerings, they can go to such representative offices.
You have emphasized several times how important Germany is for Revolut. Then why did you choose Paris as the location for your headquarters in Western Europe – and not Frankfurt or Berlin?
Firstly, France was our largest market in the EU when we decided to set up a second headquarters in the EU alongside Lithuania. Secondly, we wanted a location with a top regulator. France, Germany and the Netherlands were therefore all considered. Thirdly, we looked for a well-established banking sector and a large pool of skilled workers. Ultimately, we found that France, with Paris, best meets these criteria.
French President Emmanuel Macron and his government have also politically supported the establishment of Revolut in order to strengthen Paris as a European center for fintechs and financial innovation. Did that also play a role?
The discussions with the government were more about introducing ourselves and explaining what we do. It is crucial for us that we can convince the supervisory authorities to grant us a license.
At Revolut you have the motto of pushing boundaries in banking. What is the next frontier you want to push?
We are building a modern private banking offering. Wealthy customers no longer have to call a bank advisor to offer them products. Instead, all products are available in one app and customers can choose for themselves. If you want, you can get digital advice from an investment expert. Overall, the fees will be significantly lower than with classic private banks.
In addition to banking services as part of a subscription model, Revolut now also offers hotel bookings and access to airport lounges for private customers. Do you want to become a super app like Wechat in China, through which people can manage almost all of their everyday needs?
We don't want to become like Wechat. We want to be more of an Amazon for financial services – with all financial offerings in one app. We only offer services outside of the financial sector if they are closely linked to banking. These include, for example, insurance or travel offers for which our customers pay with their Revolut card.
Revolut is currently active in 40 countries. By 2030 you want to be present in 100 countries and have over 100 million customers. Are you not threatened with the same problems as the established banks, which have become increasingly complex over the years and have therefore lost momentum?
That's a challenge. But we approach expansion differently than traditional banks. They typically expand by buying other banks. This means that they have an independent bank with different systems in each country. The systems are often not coordinated with each other, making it difficult to use the existing data. In my opinion, this is the main reason why most established financial institutions have stopped expanding at some point.
So taking over another bank is out of the question for Revolut?
We will not buy a bank to attract new customers. But we have already bought a few banks to get a license in a new market.
How else are you going about your expansion?
When we enter a new market, we set up a local unit on site. However, we use exactly the same systems everywhere. This centralization gives us all the data we need to control the various units. This gives us – unlike the established banks – the chance to build a truly global provider.
How do you think the global banking system will change in the future?
I am convinced that digital banks will capture more and more market share. Many smaller institutions will disappear in the next ten to 30 years. Some of the established major banks will remain and primarily make money through loans. All other financial needs of people are covered by digital banks. Among them, two or three global champions will emerge, of which we want to be one.
