Revolut to invest £3bn into the UK and create 1,000 jobs

Revolut will invest £3 billion and create 1,000 jobs over five years to help boost the UK’s financial services sector – all while it looks to also expand into at least 30 other markets and push for 100 million users. And while it still does not have a full UK banking license, could the platform’s ambition for growth be about to skyrocket?

The UK’s banking sector has been due a shake-up for many years now, paving the way for fintechs to sweep in and provide customers with a banking platform that is simple, attractive and modern.

And while the likes of Starling, Monzo and Chase have made reasonable noise, no one is shouting louder than Revolut right now.

Speaking at its opening, chancellor Rachel Reeves said Revolut’s plans take total investment commitments from major financial services companies to over £110 billion in the space of a week, with Blackstone, Blackrock and Paypal added to the mix.

The wave of investments from financial services companies comes months after the government cut unnecessary red tape under the Leeds Reforms.

Reeves said the financial services sector in Britain is worth around 10% of economic output and creates 1.2 million jobs, adding that fintechs like Revolut will “help the country step up”.

“Ever since the financial crisis, our productivity has lagged behind our competitors, and I’m committed to changing that.” Around 98% of fintechs have a significant positive impact on productivity, according to Reeves.

“I am committed to ensuring that Fintech businesses, whether starting, scaling or listing, have the support that they need to succeed here in Britain,” she added.

While Revolut’s UK growth is well underway – and with a sparkling new HQ – its CEO and co-founder, Nik Storonsky, adds that its ultimate goal is to expand to reach 100 million retail customers globally by mid-2027 and be in 30 new markets by 2030.

Storonsky added that Revolut would compete with legacy banks in the regions.

“We’ve got a lot of scale, a lot of product people to develop, and a lot of data scientists. Local banks cannot really afford such investment in tech. So for us, we’re innovating and we’re improving products all the time. Sooner or later, our products will be so much better compared to other banks in any country, so it’s impossible to compete”.

Fintech’s exponential growth provides opportunities for investors, who are looking to tap into private companies. Earlier this year, the Scottish Mortgage Investment Trust, said it was investing in Revolut as the bank hit a $1 billion profit mark.

Revolut is also expected to launch an IPO next year, although this has not been confirmed, and may list on the Nasdaq as many companies continue to shun the UK stock market.

But its ultimate challenge is to get a full UK banking license, which is still in progress. In July last year, Revolut was granted a UK banking licence with restrictions. It is now in PRA’s ‘mobilisation’ stage, which requires new banks to complete the build out of their banking operations.