Why Revolut is bad: Is it a bank?

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Why revolut is bad

Revolut is a popular digital banking app that has revolutionized the way we manage our finances. With over 40 million customers worldwide, Revolut has become a household name, offering a range of innovative features that make it easy to send money, hold multiple currencies, and manage your money on-the-go. Here are more details about why revolut is bad and good:

What is Revolut

Revolut is a digital banking app that empowers users to get more from their money. It offers a range of financial services, including current accounts, debit cards, stock trading, personal loans, foreign exchange, insurance, and business accounts. With Revolut, users can send, spend, and exchange money instantly at real-time exchange rates.

Key Takeaway

  • Revolut is not a traditional bank in the UK.
  • Revolut has a banking license in Lithuania, allowing it to operate as a bank in the EEA.
  • Depositors’ money in Revolut Bank UAB is protected through deposit insurance, insured by the Lithuanian State Company Deposit and Investment Insurance.
  • Revolut offers various financial services, including e-money account holding, stock trading, virtual currencies, insurance, and more.
  • Revolut has a complex structure, with different entities and licenses in various countries.

Features of Revolut

  • Multi-currency card and mobile app
  • Peer-to-peer payments and currency exchange
  • Low-cost and transparent fees
  • Budgeting and security features
  • Get your paycheck two days early
  • Freeze a lost card with a single tap
  • Available in over 120 currencies
  • Supports spending and ATM withdrawals in 29 currencies
  • Cryptocurrency exchange
  • Stock trading
  • Personal loans
  • Business accounts
  • Insurance
  • Budgeting and financial planning tools

How does Revolut work

Revolut is a financial services app providing a range of international financial services, like currency exchange,  travel debit cards, and peer-to-peer payments. It was founded in 2015 in London and is now offering its services in 200 countries around the world.

Creating an Account 

Revolut allows you to create and upload an online account. From this account, you can make payments and online purchases abroad. You have access to your digital account through the mobile app. Through the app, you can perform all types of transactions, from transfers to payments.

Sending and Receiving Money 

Revolut enables you to send and receive money, both locally and internationally. You can chat, send, and receive money in one place. Transfers are instant between your Revolut pals. You can also create group chats to split payments for everything from holidays to hot water bills.

Using Revolut Abroad 

Revolut is designed to make international transactions easy and cost-effective. You can use your Revolut card abroad, and it works like a debit card. You can exchange and store up to 28 currencies in your multi-currency wallet. 

Account Details 

Revolut works like a traditional wallet. You withdraw (transfer) money from your bank account and put it into your Revolut account (your digital wallet), and then use that digital currency as you would normal money. In the UK, Revolut is an e-money institution, authorized under the UK Electronic Money Regulations and regulated by the Financial Conduct Authority (FCA)

Is Revolut a Bank

Revolut is not a traditional bank in the classical sense. It is an electronic money institution (EMI) and a payment institution authorized by the Financial Conduct Authority (FCA) in the UK. Revolut does not have a banking license in the UK, which means customers’ money is not automatically protected by the Financial Services Compensation Scheme (FSCS).

However, Revolut does have a banking license in Lithuania, which allows it to operate as a bank in the European Economic Area (EEA). Revolut Bank UAB, its Lithuanian subsidiary, is licensed and regulated by the Bank of Lithuania, and depositors’ money is protected through deposit insurance, insured by the Lithuanian State Company Deposit and Investment Insurance.

Revolut offers various financial services, including e-money account holding, stock trading, virtual currencies, insurance, and more. It has a complex structure, with different entities and licenses in various countries. While it is not a traditional bank, Revolut is a significant player in the fintech industry, offering innovative financial services to its customers. Let us now answer why revolut is bad:

Why revolut is bad

Here are some reasons which will tell you why revolut is bad:

  • Users report accounts being closed without valid reason or notice, leaving funds inaccessible.
  • Users cite long wait times, unhelpful representatives, and unresolved issues.
  • Reports of unauthorized transactions and identity theft on accounts.
  • Not available in all countries, restricting international money transfers.
  • Users report unexpected charges for certain transactions or services.
  • Criticized for unclear fees, exchange rates, and financial details.
  • Faced fines and warnings from financial authorities for non-compliance.
  • Targeted by scammers using the brand to trick users into revealing sensitive information.
  • Reports of glitches, errors, and slow performance with the app.

How much does Revolut cost

Revolut’s pricing is as follows:

  • Premium: €7.99/£6.99 per month
  • Metal: €13.99/£12.99 per month
  • Additional fees for currency exchange above €1,000/£1,000 per month on weekdays
  • No fees for withdrawals at over 55,000 ATMs in Revolut’s network, but limits apply depending on account type.

Some Questions

What is Revolut?

Revolut is a financial technology company that offers a range of financial services, including a mobile banking app, currency exchange, and investment products.

What are the benefits of working at Revolut?

Revolut is a fast-paced and dynamic company that offers a range of benefits, including competitive salaries, flexible working hours, and opportunities for professional growth.

What is the main difference between fiat currencies and cryptocurrencies?

Cryptocurrencies are decentralized, while fiat money is controlled by a central authority.

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