Saturday, November 27 2021

Revolut announced the acquisition of a retail license from U.S. brokers that will allow the digital bank to compete with other leading platforms in the space, including Square and Robinhood.

According to recent reports, the service, which is slated to launch in the next few months, will offer its U.S. clients commission-free stock trading, fractional stock purchases, and currency investment from credit card transactions.

Revolut is in the process of testing its stock exchange service. This feature will allow clients to buy ETFs and stocks of companies listed on the NYSE and Nasdaq.

Talk to CNBC, Ron Oliveira, Director of RevolutRevolut’s US business arm said Revolut executives had been in license talks for a year and a half with the Financial Industry Regulatory Authority (FINRA). He also confirmed that the service will be officially rolled out in the coming months.

Revolut’s expansion strategy in the United States

Currently valued at US $ 33 billion, Revolut has 16 million customers and was founded in 2015. It is one of the most successful digital banks in Europe and was originally an app offering conversion services of currencies that allowed its customers to avoid fees. It then became a bank and offers a host of services that include cryptocurrency products, and now, trading capabilities.

Speaking of the latest movement, the CEO and founder of Revolut Nik storonsky, said the new services were part of a strategic plan to enter the US market. Revolut was launched in the United States in 2020 and offers its clients high interest savings accounts, banking services for SMEs, remittances to the United States and cryptocurrency trading services between United States and Mexico.

However, it recently withdrew its services from Canada due to restrictive banking laws which prevented the fintech startup from expanding into this market.

Despite the pullback, in July Revolut received backing from Softbank and Tiger Global – and looks poised to create the world’s first financial super app. Entering the US market will be an essential element of this expansion strategy.

Storonsky said, “We are building a single app where people can manage all aspects of their finances, from banking and foreign exchange to cryptocurrency and stock trading.”

He continued, “We look forward to removing common barriers to entry into equity trading, such as account minimums and complex interfaces. “


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