I was just wondering whether Revolut is also considering to offer credit to its users in the euro countries? If so, when would that be? @edward
To be honest this could take months maybe years.
Becuase every country has its own laws and rules for providing loans. Even if they would offer it only online to avoid the laws and rules.
What does Revolut need in the other countries to could get their money back if people don’t pay back?
Must Revolut solve this issue alone or does it need an international collector.
What is the risk in some EU countries because of the high risk the country goes bankrupt?
How can Revolut check the credit score of all these customers?
Only these few questions can make it an hard and long way to introduce loans in rest of EU.
And at the moment Revolut does not have a bank license.
I really appreciate your feedback but what you said is essentially way different than how you presented it.
The key thing you have not taken into account is one of the European Union’s four pillars - in Revolut’s case that’s the freedom of movement of capital and the right to settke as a business establishment in any EU country.
Revolut, as a UK company, provides its service accross the EEA precisely because of the EU’s legal right to offer business services accross the EU. The company is regulated by the British financial authority which also operates under EU laws.
Therefore, Revolut would not need to seek approvals from each single country, they can simply find a loan provider that would be willing to offfer its services to the rest of Europe.
Not sure how they deal with assuring the loans would be paid off, but that’s not so important here.
The main problem is not to offer loans, but how to be sure that the loans will be returned and the risks.
About the EEA you are right but there are more things.
Maybe one of the Revolut employees can tell more
As it is 2018 and wants a European Banking License. Will it be possible to offer loans to all customers in Europe ? With a European license is should be easier to lend money and also get the money back.