The approval, granted by Lietuvos Bankas, Lithuania’s central bank, elevates Revolut’s operational status in the region. Having secured a full banking license in Lithuania in 2021 after starting as a specialized bank, this move into the mortgage domain represents a strategic expansion of its product offerings. The digital bank, initially functioning as an e-money provider like many of its European peers, now sets its sights on a broader financial landscape.
While specific details of the mortgage rollout within the EEA remain under wraps, the move is expected to significantly bolster Revolut’s market presence. The fintech giant, boasting over 35 million individual users and more than 500,000 business clients, is positioned to substantially increase its user base in the region. This expansion is also set against a backdrop of anticipated revenue growth, with Revolut projecting to reach $2 billion (£1.7bn) and a double-digit net profit margin for 2023.
By venturing into mortgage services, Revolut aims to offer more comprehensive financial solutions to its customers, aligning with the growing trend of digital banks diversifying into full-service financial platforms. This strategic expansion could redefine the competitive landscape for traditional and digital banks alike within the European market.