Although many app-only banks have sprung up across Britain, Revolut outshines the crowd since it is the digital bank to integrate an investment platform into its app alongside everyday banking services.
On Thursday, Britain’s digital-only bank, Revolut, stated as part of an efforts to further bring innovation and competition into the financial services sector, it is building a commission-free trading platform on its app.
Once deployed, users of its app, who can now use it to manage their funds and spend money abroad with minimal fees, will further be able to invest in stocks of British and U.S. listed firms as well as exchange-traded funds and options.
Launched in 2015, Revolut said, it wants to bring down barriers, significantly reduce costs, and simplify the sign-up processes for investors.
According to Revolut’s founder CEO, Nikolay Storonsky, with brokers charging fees as high as $6.71 (5 pounds) per trade while offering clunky technology, the scope for improvement is “massive”.
He went on to add, “To put it bluntly, we are going to cause the same disruption in investments as we have done in banking.”
Since its launched, Revolut has signed up more than 2 million customers across Europe, which represents a 300% increase in user growth compared to the previous year.
While many fintech firms have focused on a commission-free trading, including Robinhood in the U.S., Revolut is currently the only digital bank to integrate an investment platform into its app alongside everyday banking services.
The development brings Revolut into the leagues of established financial services groups including Close Brothers, Hargreaves Landsdown and Barclays.
The fintech firm said, it will generate revenues from premium subscriptions, which “will give perks to paying customers, as well as margin trading, securities lending and interest on cash held”.