Fintech startup, Revolut is shifting business customers in Central and Eastern Europe from its London-based entity to Lithuania as it prepares for Britain’s exit from the European Union.
The move is aimed at ensuring Revolut can continue to serve its non-UK customers and hedge against a no trade-deal Brexit. The process should be completed before the end of the Brexit transition period in December 2020, after which British-based firms are expected to lose passporting rights that allow them to sell financial services in the bloc.
The challenger bank has secured a Specialised Banking License from the Bank of Lithuania, which allows it to offer and passport a wider range of solutions to customers in Europe. Revolut, which counts more than 300,000 Lithuanian customers, allowed users to transfer their accounts from an e-money account to a fully-fledged bank account. It hired between 40 and 50 people this year as it beefs up its operations there.
Revolut Expands into Japan
The fintech unicorn further explained that due to some differences between local regulations, they will ask some users to reverify their ID or provide details about their business when their accounts are migrated.
Revolut said earlier this year that though its headquarters will remain in London and that UK payments will be managed from there, it will shift responsibility for its European payments to Ireland and Lithuania after Brexit.
“We will only transfer any of your and our rights or obligations under the agreement, if we reasonably think that this won’t have a significant negative effect on your rights under these terms and conditions, or if we need to do so to meet any legal or regulatory requirements. If you are unhappy about being transferred for whatever reason, you can close your account for free by reaching out to our support team (but we hope this won’t be the case!),” the digital bank further explains.
Revolut has recently rolled out a series of new products, including the launch of its app and service in Japan, which marked its first leap into a non-English speaking market. Revolut offers a ton of additional features in the UK and Europe, but the challenger bank is starting with basic features in Japan. Specifically, users are not allowed to make cryptocurrencies transactions, invest in the stock market or buy insurance products.
However, the fintech company was struck by controversy earlier this year when it faced many outages with such inconveniences that have recently become a point of contention and competition between those who offer similar services.