Revolut opens a branch in Portugal and receives a national IBAN number

Revolut, the financial app best known for its activities in the travel segment, will continue to open a branch in Portugal and is working on obtaining a national IBAN, said Ruben Germano, responsible for the project.

In an interview with Lusa, Ruben Germano said that for Revolut, which currently operates with a Lithuanian IBAN, it is important to obtain a Portuguese IBAN in order to be able to operate in a banking model closer to that of institutions operating in the national market and launch financial products such as like a personal loan.

“Our main goal is to comply with all regulatory requirements,” he said, noting that the goal is to obtain an IBAN this year.

“We are studying all the regulatory analyzes and all the reports that we have to comply with,” he stressed, adding that Revolut is working with the Bank of Portugal in this regard.

“We want to move from a company that was very focused on the ‘travel’ segment of travel” to an institution that aims to become the primary bank for customers, he said.

The company therefore wants to promote new products that require a Portuguese IBAN number and is already planning to launch a personal loan.

“We are going to launch consumer lending without a specific purpose, which is the largest segment of consumer lending,” he emphasized. After that, Revolut will continue to offer “low-risk” investment products, he assured, and credit cards could be another of those launches.

Regarding investments in raising fixed or term deposits, Ruben Germano said they were on Revolut’s horizon, but not in the short term, and the person in charge admitted that it could be difficult to enter segments such as home lending.

“There are products that, as we know, have gained a foothold in the market, for example, mortgages. [crédito à habitação]for example,” pointing out that banks “are also protecting these anchor products” that others are “trying to join.”

“Without these products,” it is “more difficult” to fight competition, he said, but he stressed that the bank is competitive in terms of prices and highlighted greater simplicity and speed, as well as institutional transparency, as advantages.

When asked about the doubts of traditional banking clients regarding this type of bank without branches and with a strong technological focus, Ruben Germano recalled that Revolut is protected by a deposit guarantee and that it has a banking license in Lithuania.

“We have been a profitable company for many years,” he said, also pointing to the company’s growth.

“I think we have all the stability to guarantee so much money from clients,” he assured, recalling “the regulatory standards that are necessary and which are part of the banking security system.”

Opening a branch with a more local aspect could also contribute to that trust, he noted, although he rejected opening branches.

Revolut’s global revenue, which does not disclose figures for each market, rose 45% to 1.1 billion euros in 2022 and the group expects to earn almost 2 billion euros this year. The group employs 1,300 people in Portugal (9,000 worldwide).