Due to the advancements in technology and cheap data plans, millions of individuals all across the world hardly ever go to a physical bank anymore unless absolutely necessary. Much of the transactions can be conducted online or through an app, which is why the idea of a digital-only bank did not seem too farfetched when it was first floated. One of the better-known banks in this space is Revolut of United Kingdom, and over the years, it has managed to gain a foothold in the financial world. In a new development that will come as a major boost for entities looking to enter this space, Revolut launched its services in Australia last week.
Revolut has launched a beta version of its app as of now and has entered a market that has already seen the emergence of several digital-only banks. The company will make Melbourne its headquarters in Australia, and it is believed that as many as 30 new jobs are going to be created by the end of 2019. In this regard, it is important to note that Revolut is not a bank when it will operate in Australia since the only banking license it has acquired is from the European Central Bank.
The Revolut app is known to be highly user-friendly, and users of the platform can send and receive money quickly. On the other hand, the app also had a built in the feature by way of which people can request payment by sending a GIF. However, more importantly, the app has a feature that allows people to track the amount of time that he is spending on different things like food delivery and grocery shopping, among others. Although the company has 5 million users, it had emerged that Revolut did not really have a screening process for new customers for the first three months and that is a potential problem, considering the fact that these sort of apps are prone to be misused by criminals. Dr. Patrick McConnell, who is a risk management expert, stated,
There are so many red flags going up at the moment that you need to ask the question whether ASIC [the regulatory body] really wants to allow this company to operate in Australia.