Revolut, a leading fintech platform and neobank, has received a special banking license to operate in Spain. User deposits are now insured up to €100,000, with coverage provided by Deposit and Investment Insurance, a Lithuanian state-owned company. The company, which now has more than 800,000 customers in Spain, plans to expand its user base with this new development.
Revolut customers in Spain can switch to Revolut Bank
Revolut, one of the largest fintech neobanks in Europe, has obtained a special banking license in Spain and can now offer deposit insurance to its customers. Protection of deposited assets will be provided by a Lithuanian state company called Deposit and Investment Insurance, and it will cover amounts up to €100,000 (about $115,000). To benefit from this protection on their assets, customers will need to upgrade their Revolut accounts to Revolut Bank accounts.
The strategy aims to keep Revolut growing in Spain after a poll last year indicated that more than 80% of users would deposit more funds into the service if they were insured. Similarly, 60% said they would use Revolut to settle payments if the platform offered insurance options.
Revolut, which has its origins in the UK, has seen significant growth in Europe, now boasting over 18 million customers. The platform, which is commonly used around the world to make remittances and payments, came to the United States last year.
Spain is not the first country where Revolut has applied for a banking license. It already offers these protections to customers in Belgium, Denmark, Finland, Germany, Iceland, Lichtenstein, Luxembourg, the Netherlands and Sweden, where it has also succeeded in offering credit products to its users. On offering insurance to its customers, Joe Heneghan, CEO of Revolut Bank, said:
The launch of the bank in Spain will provide an increased level of security and confidence to our customers and allow us to launch more products and services in the future.
Revolut has also been offering in-app cryptocurrency purchases since 2017, merging fintech and crypto into one platform. One of its direct competitors in the field, N26, only recently announced the introduction of cryptocurrency trading, lamenting its delay in offering these services to customers.
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