It’s been a busy week for Revolut. The British challenger bank confirmed that it will be applying for a US banking license and has started to operate in Russia. Now the firm has said it will be launching a trading platform for its customers called ‘Wealth.’
According to CNBC, Revolut CEO Nikolay Storonsky confirmed the news on the same day the firm announced it had reached 2 million users. This is remarkable growth considering the company reached the one million mark just over six months ago.
Storonsky may have announced the launch of Wealth today, but it will be some time before Revolut customers can use the service. The trading platform is currently being developed and is unlikely to be available to Revolut customers until next year.
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High fees, poor service – a gap in the market?
It seems that the new trading platform will act as a retail broker but without charging commission fees. Wealth will allow users to trade in US and UK listed companies as well as in other instruments such as options and exchange-traded funds.
The decision to launch such a platform appears to be targeting a gap in the market akin to the one that allowed challenger banks to launch in the first place. Storonsky told CNBC that “high fees and clunky interfaces” had prevented people from trading – exactly the kind of language used by challenger banks to attack their traditional banks.
The trading arena should, to some degree, be familiar territory to Revolut. In January of this year, the firm launched a cryptocurrency service that enables users to buy, sell and hold a number of different cryptocurrencies, including Bitcoin and Ethereum.