Revolut’s Impressive Growth in 2024
In an impressive growth trajectory, Revolut, the prominent financial technology firm, announced a remarkable achievement in 2024, with its pre-tax earnings soaring to 1 billion British pounds (approximately $1.3 billion). This figure represents a significant increase from last year’s profits of 438 million pounds, fueled by a dramatic surge in customer acquisitions and a revitalization in cryptocurrency trading, as disclosed in their annual report on April 24.
Revenue and Key Segments
The fintech’s revenues also reflected this robust growth, climbing dramatically to 3.1 billion pounds from 1.8 billion pounds the previous year. One of the standout segments of Revolut’s business was its wealth management division, encompassing both stock trading and digital asset transactions, which recorded revenues of 506 million pounds—an astonishing nearly fourfold increase compared to 2023, reflecting the rise in crypto trading activities.
User Growth and Revenue Streams
A major factor in this success was the addition of almost 15 million new users over the past year, elevating Revolut’s total customer count to over 50 million. This influx significantly enhanced revenue derived from card transaction fees and interest on customer deposits, which represent the company’s largest revenue streams. CEO and founder Nik Storonsky commented on these milestones, highlighting that
“2024 was yet another landmark year for Revolut, marked by consistent growth across all major business lines.”
Banking License and New Products
In a noteworthy development, 2024 also saw Revolut secure a long-anticipated banking license in the UK, obtained in July after navigating a rigorous three-year regulatory review. This license is expected to enable the firm to broaden its lending portfolio, introducing products such as credit cards and buy-now-pay-later solutions, along with mortgage offerings currently in testing phases.
“The acquisition of our UK banking license (with restrictions) has set the stage for future enhancements to our product suite domestically,”
Storonsky stated.
Expansion of Cryptocurrency Services
Additionally, in May of 2024, the company launched Revolut X, a specialized desktop cryptocurrency exchange designed for seasoned traders, featuring low transaction fees and support for 100 different tokens. Plans are in place to extend this platform to mobile users by 2025. By November, Revolut successfully expanded its crypto exchange services into 30 European Economic Area markets, including nations such as Belgium and Denmark.
Challenges and Future Goals
Despite experiencing growth, Revolut still faces the challenge of converting its app users into primary banking clients. Strengthening its deposit base is critical for banking operations and competing against traditional retail banks. The total customer balance increased significantly from $23.9 billion to $39.8 billion in 2024. The fintech is also working to boost its subscription service, having achieved a 74% rise in revenue from paid plans, totaling 423 million pounds this year. Furthermore, the business services segment now comprises 15% of the company’s overall revenue, signaling a strategic shift to diversify earnings beyond just retail banking services.
Looking forward, Storonsky expressed ambitious goals for the company, aiming to reach 100 million daily active users across a hundred countries in the near future.
