After going through a year of pandemic, positive signs for Revolut and Starling
The coronavirus pandemic arrived in the UK just over a year ago, scrambling neobanks’ strategies and forcing them to cut costs and boost revenues. But after a year of turmoil, two of UK’s most prominent neobanks see signs of better days ahead, Financial Times says reports:
- Revolut sees promises in the US market. The neobank had initially planned to campaign for the acquisition of customers for good last March, but put those plans on hold with the advent of the pandemic. Now Revolut has announced that it will launch an aggressive marketing blitz in the United States as it targets a target of 1 million customers in the country by the end of the year, Financial News reports. And this is only on the consumer side: the neobank has also spear business accounts across the United States at the end of last month. Another sign that Revolut is playing the long game in the United States, it has also applied for a US banking charter that would give it more flexibility to strengthen its deposit solutions and expand into lending products at a fraction of the cost.
- Starling predicts sustained demand for business relief loans. The neobank has taken a hard look at the demand for relief loans through the Coronavirus Business Interruption Loan Program (CBILS) and Bounce Loan Program (BBLS) supported by the UK government throughout the UK. past year. He has accredited in April for CBILS and in May for BBLS, then I accept BBLS loans from non-clients last longer than other lenders. The tactic paid off: Starling reached 300,000 corporate accounts in March – a huge jump from the 74,000 it had in 2019 – and benefited from a trail of profitable months. And while it may need to design a long-term business lending strategy independent of emergency relief loans, it may be able to continue to ride the wave of relief loan demand for now. British government spear yesterday, the country’s relief loan program, the recovery loan program (RLS). Research conducted by Starling in partnership with Enterprise Nation indicates that 70% of small business owners who took out a BBLS loan would also consider applying for an RLS loan, through AltFi. Although Starling is not currently an accredited RLS lender, it is in discussions with government regulators to get accreditation and thinks he can start accepting nominations soon.