One of the main advantages of a banking licence was supposed to be having the funds covered by a deposit insurance.
As far as I understood, though, despite the licence available now funds are not yet covered by any such insurance.
Is there yet a realistic (please no “as soon as possible” response) date know when that will be most likely in place? Will that be from early 2019 (Jan-Feb), later (Mar-Jul), or rather towards the end of the year (Aug-Dec) or even later (2020+)?
For the meantime and on a related note, what are the procedures when Revolut’s backing bank goes belly-up? Am I right to assume customers will lose their funds?
You would be able to reclaim your money from Lloyds Bank as the customer funds are stored in ring-ringfenced client accounts (meaning neither Lloyds or Revolut are allowed to access the money to cover their running costs)
As for if Lloyds go bust, I doubt they’re going to do so anytime soon after the financial crash in 2008 (they keep a lot more capital to avoid insolvency and government bailouts!) I’m relatively sure you’d still get your money back.
You’re right that it’s very unlikely. But the question is specifically about what happens if the “backing bank” (Lloyds Banking Group plc) does become insolvent. The issue here is that Revolut, not Revolut’s customers, is the customer of Lloyds and the protection ceiling is GBP 85,000 (derived from an EU ceiling of EUR 100,000) per customer. Therefore the protection would be GBP 85,000 shared across all of Revolut’s customers.
Very, very unlikely as far as I know. Banks since the 2008 financial crash have been keeping even more capital than regulation requires to ensure they don’t collapse in the event of another financial crash (as internal policy)
Unfortunately that was the very ASAP response I referred to but that particular question is, as mentioned earlier, not even the main question anymore but rather the following part
Is my assumption and @NFH’s statement accurate or did we miss anything important?
I asked about this and Revolut informed me all accounts are held in your name and not Revolut’s, meaning you would receive your money even if the event of an insolvency of Lloyds or Barclays
Thanks for the response but I’d really like to get that as an official statement.
That would imply Revolut’s backing bank consider each individual Revolut customer as one of theirs, which is something I find hard to believe but maybe Revolut could clarify that
I mean I asked a pretty exchaustitive question. I asked what would happen in the event of insolvency of all banks involved as well as Revolut.
The customer support assured me that due to the accounts being held in our names (regardless of whatever details are associated with the account) and those accounts being ring-fenced, they’re kept separate from the funds of the bank and would be returned to us above all other creditors.
I’m sure they’re just giving information that they have been fed, so that would be the official response.
Well if it’s that important head over to the support chat, so you’re able to get this statement on your own or ask @AndreasK for example via private message