Spotlight on Revolut
Date: 06 May 2024
Author: Maximilian Jany
Who are Revolut?
Founded in 2015 in London, Revolut aims to become the one stop app for any financial needs. They have since expanded to support 200+ countries and regions, with over 35 million retail customers, 500 thousand business customers, and a valuation of 33 billion USD.
What type of loans does Revolut offer?
Currently limited to nine specific regional markets, Revolut offer mainly retail lending, specifically unsecured personal loans, and credit cards. As such, Revolut offers market dependant solutions focused on their retail customers and plan to extend the regions covered in the near future.
As part of their focus on retail lending, Revolut aim to offer personalised affordable credit to people and businesses anywhere at any point in their life, with a particular focus on being customer centric. The aim is to provide a flexible and personalised experience with as little friction as possible when using their products.
The use of AI in credit
Revolut underlined that AI and machine learning in credit is not a new concept, however, what has changed is the use thereof. Revolut now has access to a lot more data than even 10 years ago, including a bigger diversity of sources, in addition to which, new techniques and technologies with how data can be used combine to offer better experiences and offers to customers.
Revolut uses AI to reduce lending to the “wrong” people, notably with regard to credit indicators, such as chances of defaulting on debt, whether repayment will be in arrears, and even simple factors such as whether a client can afford to repay their debt.
Revolut places a particular focus on including this in open banking, connecting their accounts to Revolut, and getting customers to allow their banks to provide the necessary data to Revolut.
The aim of these customer-centric methods remains to assist the customer, such as by providing a more personalised equivalent to a credit score, which has the benefit of being situational and evolving, and therefore less likely to significantly impact customers’ lives negatively if they enter into arrears.
Further information and details can be found on the Revolut Website.
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