Revolut: Transforming Banking with a Vision.
Company profile
Company business details
Motivation to build the product
The founders were motivated by the inefficiencies and high fees associated with traditional banking systems. They sought to create a solution that would simplify banking and make financial services more accessible to everyone, leveraging technology to enhance user experience.Problem that their product solves
Revolut solves the problem of high fees and inefficiencies in traditional banking. Its end users include individuals and businesses looking for a more cost-effective and user-friendly way to manage their finances across multiple currencies and services. Solving this problem is important as it allows users to save money and time while accessing essential financial services.Their unfair advantage
Revolut's unfair advantage lies in its ability to offer a comprehensive suite of financial services through a single app, eliminating the need for multiple banking relationships and reducing costs for users.Strategies
Pre-Launch (Product Development & MVP)
Testing New Markets
Before launching in the U.S. market, Revolut conducted testing with initial customers to refine its offerings. This involved gathering feedback and making necessary adjustments to ensure that the product met the needs of U.S. consumers. The company aimed to roll out its services as soon as testing was completed, demonstrating a commitment to understanding and adapting to new market dynamics.
Iterative Product Development
During the product development phase, Nick adopted an iterative approach to launching new features at Revolut. He established a committee of experienced team members who had previously launched products to evaluate new ideas. If the committee was positive about a product, it would be launched; if negative, it would be shelved. This method allowed for a more calculated risk-taking approach, ensuring that only the most promising ideas were pursued, thus optimizing resource allocation.
Customer-Centric Product Development
Nick, the founder of Revolut, focused on creating a product that addressed his own frustrations with traditional banking while traveling. He set up multiple bank accounts in different currencies and found the process cumbersome and inefficient. This led him to develop a multi-currency account with a card that allowed users to spend at interbank rates without incurring foreign exchange fees. He conducted extensive research on payment infrastructure and sought out consultants to help him understand how to build the necessary systems, ultimately leading to the creation of Revolut's core product.
Launch Stage
Performance Marketing Focus
In the early stages of Revolut, Nick emphasized a performance-driven marketing strategy, focusing on data analytics to measure the effectiveness of marketing campaigns. He believed in the importance of understanding which inputs led to desired outputs, allowing the company to optimize its marketing spend effectively. This approach helped Revolut to scale rapidly by ensuring that marketing efforts were directly tied to measurable results, thus maximizing return on investment.
Regulatory Engagement Strategy
During the launch of Revolut's banking services, Nick learned the importance of engaging directly with regulators. He initially believed that hiring experienced banking executives to handle regulatory matters was the best approach, but he found that personally communicating with regulators allowed him to explain Revolut's innovative practices more effectively. This direct engagement helped streamline the licensing process and positioned Revolut favorably in the eyes of regulators.
Learn more about Revolut
Unbound London 2019 - The Revolut Story: Lessons Learnt From a Unicorn
Nik Storonsky, Revolut Founder: What Revolut Needs to Do to Hit $100BN Valuation | E1233
Martin Mignot interviews Nik Storonsky, founder and CEO of Revolut, at Slush
