The European Central Bank (ECB) has officially declared Revolut Bank UAB a “significant” entity, marking a pivotal moment in the digital banking sector. This classification means Revolut will join the ranks of over 100 major banks under the direct supervision of the ECB, a move reflective of its growing prominence and expansion within the European Union.
Revolut Bank, a component of the Revolut Group serving clients in the European Economic Area (EEA), was deemed “significantly supervised” at the close of 2023, following extensive reports in Lithuanian media. Having obtained its banking license from the ECB in 2018, Revolut has been a key player in the EEA, offering an array of digital-only, innovative financial services in one comprehensive app. These services range from payment solutions to consumer credits, alongside numerous other avant-garde offerings from various Revolut entities.
Since 2014, under the broader Single Supervisory Mechanism (SSM) instituted by the European Union, the ECB has directly overseen the largest banks and financial entities within the Eurozone. This is part of an effort to ensure consistent and effective prudential supervision. The inclusion of Revolut Bank UAB within this supervisory framework underscores its significant growth and influence within the industry.
With a customer base exceeding 25 million clients in the EEA, of which 3.4 million are in Romania, Revolut Bank UAB is now one of the top three financial institutions in Lithuania by assets held. It boasts a market share of over 19% by assets, as reported by Lithuanian press, and recorded a net profit of 23.6 million euros in 2022.
Looking ahead to 2024, Revolut Bank is set to expand its physical presence with local branches in various countries including France, Ireland, Spain, and the Netherlands. The Romanian branch of Revolut Bank UAB is expected to become operational in the first half of the year, offering local IBANs and participation in local payment schemes, further solidifying its role as a leading digital bank in Europe.
