Fintech bank expands

Revolut raises $80m to roll-out new bank services

Martin Gilbert

Martin Gilbert: chairman

Fintech banking start-up Revolut, chaired by Scots asset manager Martin Gilbert, has raised $80 million (£63m) from Silicon Valley based private equity firm TSG Partners.

Revolut is building on its app-based bank accounts to expand into home and travel insurance, buying cryptocurrencies and share dealing.

In February, the company  raised $500 million led by TCV, an early-stage backer of Spotify, Airbnb and Netflix.

The latest round values it at $5.5bn, making it the UK’s most valuable consumer fintech firm. TSG is a backer of the Scottish brewing and pubs group BrewDog.

Founded by Nik Storonsky, Revolut has grown from a standing start little more than five years ago to have more than 2,000 employees and more than 12 million customers in well over 30 countries. It has 12 million registered users.

Martin Gilbert, founder of Aberdeen Asset Management and former co-CEO of Standard Life Aberdeen, became chairman earlier this year.

Michael Sherwood, former boss of Goldman Sachs in Europe, has joined the company as a non-executive director.

Banks facing Covid hit

The fund-raising for one of Britain’s newest banks comes as the high street giants are set to reveal a £14 billion hit from the Covid-19 crisis.

City analysts expect HSBC, Barclays, Lloyds Banking Group, Natwest/RBS Group and Standard Chartered to book billions of pounds of impairment charges against their loan book when they post results for the first half of 2020 in the next two weeks.

HSBC is expected to report bad debts of about $5.8bn, Barclays £3.5bn, Lloyds £2.8bn, Natwest/RBS £1.8bn and Standard Chartered $1.9bn, according to analysts.

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