Revolut, the neobank, is purportedly making strides towards potentially introducing home loans in Ireland, marking a significant test for the country’s entrenched traditional banks. Revolut has been conferring with brokers in Ireland and weighing up possibilities of offering residential lending through these middlemen or by liaising directly with its customers.
The banking giant’s potential incursion into Ireland’s mortgage market is under intense scrutiny. With an astounding 2.7 million existing customers in Ireland, it reaches nearly three-quarters of those aged 18 and up, putting it in a favourable position to provide a formidable challenge to the market hegemony enjoyed by AIB, Bank of Ireland, and Permanent TSB who collectively command about a 93 per cent stake in the Irish mortgage sector.
Last month, following a share sale by employees, Revolut’s credentials as Europe’s most promising start-up were reinforced by an impressive valuation of $45 billion (€41bn), resistant to a broader fintech slump.
Utilising a banking licence obtained in Lithuania, Revolut delivers services both in Ireland and throughout the EU. After a prolonged three-year procedure, the UK authorities finally seal of approval for Revolut’s banking licence.
Whilst Revolut has been a resounding success since its establishment less than a decade ago, the neobank has also faced repeated censures for its inadequate support for customers, particularly those at the receiving end of fraudulent activities.