Revolut expands into private wealth services

By Parth Prabhudesai

UK FinTech giant Revolut is preparing to expand into private banking as it targets wealthier customers and broadens its financial services business in the UK.

The London-headquartered company plans to launch private banking services later this year for clients able to deposit at least £500,000. The move comes alongside fresh regulatory approval from the UK’s Financial Conduct Authority (FCA), which has granted Revolut permission to offer more sophisticated financial products through its trading arm.

The new permissions will allow the company to expand into leveraged products, managed portfolio solutions, and private wealth services, strengthening its push into the high-net-worth segment.

Victoria Laffey, Head of Operations at Revolut’s trading division, said, “These permissions are the missing piece allowing us to unite investment, advisory and portfolio management under one roof.”

Revolut stated that private banking remains an area under exploration as part of its wider strategy to expand and enhance its product offerings.

The development marks another step in Revolut’s evolving relationship with UK regulators. Earlier this year, the company secured a full UK banking licence from the Prudential Regulation Authority after a four-year approval process.

Wealth management has become an increasingly important business segment for Revolut, particularly through investment and cryptocurrency-related services. The division contributed significantly to the company’s financial growth, helping drive a 31% increase in wealth revenues to £663 million last year.

Revolut’s broader business model has also continued to diversify beyond traditional banking activities. Unlike conventional banks that rely heavily on lending and deposits, the company generates most of its revenues from fees tied to services such as subscriptions, foreign exchange trading, payments, and wealth products.

The FinTech reported pre-tax profits of £1.7 billion last year on revenues of £4.5 billion, while private investors reportedly valued the company at around US$75 billion during a recent secondary share sale.

Analysts believe Revolut’s continued expansion into wealth and private banking could further strengthen its position among global digital financial platforms targeting affluent and internationally active customers.