Revolut launches deposit-insured bank in Lithuania

via FinTech Futures

Revolut has launched a bank in Lithuania for its 300,000 Lithuanian customers, enabling them to switch from e-money accounts to bank deposit accounts “in just a few minutes”.

The UK challenger secured its Lithuanian banking licence back in December 2018, and speculation is rife that the neobank is trying to land a UK banking licence before year end.

The launch of its licensed bank comes off the back of its $500 million funding in February from TCV, which saw it list “operationalising the bank” as one of its key 2020 priorities, as well as reaching profitability.

Revolut’s Lithuanian customers’ deposits will be protected by the Lithuanian state company Deposit and Investment Insurance.

As well as deposit-insured bank accounts, Revolut says it also plans to roll out consumer lending services to the region “in the coming months”. These services would include consumer loans and credit cards.

Alongside lending services, the challenger bank says it will launch its Revolut Junior accounts – currently only live in the UK – for Lithuanians aged 7-17.

Only children of parents with Premium and Metal accounts, which cost £6.99 and £12.99 a month respectively, can get access to Revolut Junior accounts.

The challenger’s operations in Lithuania are headed up by former SEB chief executive Virgilijus Mirkės, who was appointed as CEO of Revolut Bank last June.

“Revolut has become a trusted household name in Lithuania,” says Mirkės. “We are incredibly excited to take the next step in our mission to build a world-class bank for our customers in Lithuania.”

Whilst Revolut’s 300,000 customers may not seem like a lot, Lithuania only has a population of around 2.8 million, giving the challenger bank a rough 11% market share in the region. Globally, the challenger says it has 10 million customers.

Revolut set up an office in Lithuania’s capital Vilnius three years ago, and it now employs more than 170 people.

The challenger says it intends to passport its Lithuanian banking license to other Central and Eastern European countries “later in the year”, with Lithuania acting as a “hub” for the region.