Revolut Launches Personal Loans to Challenge UK High-Street Banks
Revolut has introduced unsecured personal loans in the United Kingdom as part of a strategy to become the primary bank for its 14 million British users.
Digital bank Revolut has launched unsecured personal loans in the United Kingdom, marking its first credit product in the country since securing a full banking license. The loans range from £2,000 to £25,000 with annual percentage rates between 6.9% and 29.3%. While initially available to a select group, the product will roll out to the company's 14 million British users over several months.
UK CEO Francesca Carlesi stated the company intends to transition from a spending app to the primary bank of choice for UK consumers. To compete with established lenders like HSBC, Barclays, and NatWest, Revolut is utilizing external data providers to manage risk and plans to offload that risk through securitization. Carlesi noted that the company built a transparent process featuring near-instant funding and no fees for early repayment.
The lending expansion is the first step in a broader credit strategy. Revolut plans to launch a credit card product in the near future and eventually enter the UK mortgage market.
