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UK-based online banking platform Revolut has forayed into the Italian credit market by launching its personal loan product in the South European country
UK-based online banking platform Revolut has forayed into the Italian credit market by launching its personal loan product in the South European country. At the time of writing, the loan is accessible to a limited group of users, but it is expected to be available to all two million Italian Revolut customers by the fall, according to the head of Branch and Lending Italy at Revolut.
The loans will range from EUR 1,000 to EUR 50,000, with terms of up to 84 months. Interest rates will vary between 6.89% and 16.99%, subject to market conditions. The application process for the loan can be completed online, and after submitting the necessary documents, Revolut aims to provide the loan in a matter of minutes.
Upon acceptance, the funds will be deposited directly into the borrower’s account, and borrowers will have the option to adjust the payment date of their monthly installments and make higher payments if they choose to do so. Revolut's expansion plans in Italy Revolut's personal loan is already offered in ten other markets. The company aims to capture approximately 3% of the Italian personal loan market, which amounts to about EUR 2 billion per month according to corriere.it.
The introduction of personal loans is part of Revolut's strategy to increase its user base in Italy, with the goal of making Revolut the primary account for its users' salary deposits and major financial activities. Revolut officials added that by the end of the year, the company plans to obtain an Italian IBAN, which will enable it to expand its services to include credit cards, Buy Now, Pay Later options, and potentially mortgages in the future. In other developments from Revolut, the European Central Bank has urged the company to enhance its financial crime controls and governance for its European operations.
This development followed a review that highlighted issues similar to those affecting the fintech’s bid for a banking licence in the UK. The ECB, which began directly supervising Revolut Holdings Europe UAB earlier this year, has been conducting a comprehensive evaluation of the unit. .
Jul 23, 2024 14:02
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