Revolut annual losses double on rising risk control costs


FILE PHOTO: Woman holds smartphone with the Revolut app in front of a displayed Revolut logo in this illustration taken February 4, 2020. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - Digital banking app Revolut said its annual losses doubled to just over 200 million pounds ($278 million) as administrative costs rose from investment in risk, compliance and controls.

Administrative costs increased from 125 million pounds in 2019 to 266 million pounds in 2020, Revolut said, outpacing growth in revenues as it expands into new markets.

Founded in 2015 by former Credit Suisse trader Nik Storonsky and software developer Vladyslav Yatsenko, Revolut has since attracted more than 15 million retail customers with products including currency exchange, debit cards and stock trading.

The London-based start-up is one of Britain's biggest fintech success stories, hoovering up customers attracted by its cheap rates on foreign exchange as well as cryptocurrency investment and other products.

That success has fuelled its expansion, with the company applying for its U.S. banking license this year.

Revolut has drawn criticism, however, with Reuters reporting in 2019 on widespread complaints from customers about their funds being frozen and poor customer service.

The fast-growing fintech in April said it will hire around 300 staff in India as it builds out its global support hub there.

Revolut reported on Monday customer balances almost doubled from 2.4 billion pounds to 4.6 billion pounds, as it expands into markets including the United States, Australia and Japan.

(Reporting by Lawrence White; Editing by Alexander Smith)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Google to build its own chip for new Pixel smartphone
Olympic athletes inspire robotic zen garden in Tokyo
Instagram says some users having issues with platform
Micron kicks off dividend payments, shifts to 'opportunistic' share buybacks
AT&T's DirecTV to become standalone video business
Twitter partners with AP, Reuters to battle misinformation on its site
Google to launch own processor for upcoming Pixel phones
Ferrari boss has no fears over electric future
Facebook's Kustomer deal may hurt competition, EU regulators say
Uber, Lyft seen boosted by return of riders, but driver shortage, stubborn virus cloud outlook

Stories You'll Enjoy


Vouchers