Following this announcement, Revolut is seeking to expand its suite of solutions and revenues outside of Europe, which accounted for more than 90% of its sales in 2023. As fintech companies have proliferated in India, they also catered to millions of the FI’s growing middle class who previously had limited access to formal banking tools.
In addition, Revolut is expected to continue its strategy of meeting the needs, preferences, and demands of clients and customers in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well.
According to the Financial Times, one of the challenges present in the development of most Indian fintechs is the unit economics, given India’s low GDP per capita, which is estimated by the IMF at USD 2.730. Furthermore, the realistic size of the market for Revolut was in the top 10-15% of India’s 1.4 population.
The financial institution is also expected to submit an audit report to the Reserve Bank of India, with the overall goal of getting full authorisation after the tentative approval. After this process of done, Revolut’s strategy in the region is to stay profitability-focused, with a customer-centric approach and the aim of accelerating the development of the local financial landscape.
At the same time, Revolut is also seeking to expand its suite of services in the Middle East, as the financial institution already applied for e-money and remittance licenses with the Central Bank of the United Arab Emirates. This initiative came as ministers in the financial institution’s home market have sought to entice the United Arab Emirates in order to invest more in British projects, as well as to expand a free trade deal with the six Gulf nations that form the Gulf Cooperation Council.
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