UK-based neobank Revolut plans to hire 3,500 new staff members as it aims to expand into 24 new markets, according to Reuters. For its expansion plans, Revolut has partnered with Visa, which will power 75% of Revolut’s cards moving forward.
The neobank currently has 1,500 employees and caters to over 8 million customers, who hold an average of around €1,000 ($1,092) in their accounts; of note, Revolut announced it reached 7 million users at the start of September, indicating rapid user growth. It wants to expand from its current markets in Europe and Australia to eight new ones this year, including Brazil, Russia, Japan, and the US. Other launches in Latin America and Asia will follow next year.
- Expanding into new markets will likely take plenty of resources — and a stronger workforce will help support these plans. Revolut will either have to get licensed in the new markets or partner with existing banks in the countries to leverage their banking licenses. Additionally, it’ll need more staff, such as developers, in order to tweak its offering for the different markets and adjust its app to ensure that it captures the unique demands of consumers across different regions. Revolut’s app is already available in 24 languages, for example, but it will likely have to add more as it expands into new markets. It already said it’ll customize its product for the German market and Europe more generally, but more adjustments will likely be necessary as it expands further.
- Moreover, boosting its workforce amid aggressive expansion plans will likely help Revolut avoid scandals in the future. Revolut faced criticism earlier this year when it was accused of failing to block potentially suspicious transactions on its platform, and it experienced a social media storm over its Valentine’s Day advert. The firm already announced in September that it would hire up to 400 new employees in Portugal to strengthen its compliance and customer service departments, and continuing to strengthen its workforce in these areas will likely help support its future growth.
As neobanks fuel their expansions into more markets they’re becoming a bigger threat to incumbents, but big banks are fighting back. European neobanks are increasingly eyeing international expansion: N26 and Monzo recently launched in the US, for example. Additionally, these players continue to establish themselves in their existing markets, with those operating in the UK on track to top 35 million customers globally in the next 12 months, up from 13 million at the beginning of September, per Accenture.
And while expanding is a good move for growing revenue streams and brand awareness, these players need to ensure that they stay focused on giving their users a great in-app experience and customer service, especially since incumbents are busy digitizing and gearing up their own user experiences: US Bank completely overhauled its app earlier this year, for example.
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