Deposit insurance


#1

@AndreasK

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?


#2

Judging by

it would seem as it will be end-2019 to 2020, right?

So that would only leave the second question as to what happens when the backing bank defaults.


#3

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.


#4

Please re-read the question :slight_smile:

Thats the very point. What happens when it happens.


#5

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.


#6

That was my assumption too, hence the reference to customers losing funds.


#7

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)


#8

The question was not about the likelihood but about the procedures. Unless you give a guarantee of course :wink:


#9

I’ll give you a guarantee of all the money in my Revolut account at the time Lloyds goes insolvent, unless Revolut are storing their own money then :wink:


#10

Alright, lets get back to the original question, shall we.

I assume @NFH’s description is accurate and I hope @AndreasK could confirm respectively clarify it.


#11

@AndreasK

twentytwenty


#12

As soon as we have something to share we will let you know.


#13

Thanks for the response, Andreas.

Unfortunately that was the very ASAP response I referred to :wink: 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?


#14

@AndreasK? :slight_smile:

tweeeeeeenty


#15

An official statement would be still appreciated :wink:

@AndreasK


#16

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


#17

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 :slight_smile:

@AndreasK, the sixth


#18

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.


#19

Again, I thank you for the feedback but I’d really prefer to get a statement from a Revolut official.

It is pretty demotivating that nobody at Revolut considers that question important enough to have addressed it for the past two weeks and counting.


#20

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

https://community.revolut.com/faq#power