Revolut weak point in banking system

daveyjp

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?

Were there no red flags when first signing up letting people know this important fact and the downsides?

Rob5342

TheBanker said:

Browntoa said:

And in each occasion it's people's stupidity falling for the oldest scam " this is your bank " call.

The article also fails to mention that many card suppliers use virtual and one use cards ( I have several) and make it look like it's unique to revolut 

In reality most people say they won't fall for such a scam. Until they do. 

That's very true. When you know it was a scam its easy to say they were being stupid, but the scammers are well practiced and know exactly how to manipulate people. The head of finance where i used to work got taken in by a scam and they were far from stupid. Luckily they realised before any money was transferred but they wete quite close to doing it. 

masonic

daveyjp said:

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?
Were there no red flags when first signing up letting people know this important fact and the downsides?

Even now, they don't market themselves as a bank. The offering has historically focused on pre-paid debit cards, crypto trading, forex, etc. The savings offering came much later IIRC. They've never claimed FSCS protection applies to their accounts. People are likely to view them as more similar to Paypal than HSBC.

Theleak250

daveyjp said:

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?

Were there no red flags when first signing up letting people know this important fact and the downsides?

I would suggest the majority of people use them for travel and to store a bit of money or crypto currency. The business owner in the documentary stated that she was very busy and wanted to open a business account quickly, another wanted easy access to different currencies. I must say if you are too busy to own a bank account for your business, it’s a sign of more than one issue. 

I have been a customer of theirs a few times, when they obtain a banking license I suspect some people will be spitting. I may open an account once this occurred, I consider them a decent offering. All banks have such incidents, they have expanded rapidly. One would hope with the banking license brings a better handle on the situation.

Emily_Joy

daveyjp said:

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?

Were there no red flags when first signing up letting people know this important fact and the downsides?

Until very recently for UK residents who need to pay and receive payments in different currencies, Revolut was about the only option. Travel credit cards exist, but not everyone is eligible, and they don't offer a cost-efficient way to receive payments in foreign currencies.

Edit to add: to any unexpected call I reply: "I cannot talk now. Please give me your name, the name of the organisation you work for, your position, and a phone number. I will contact you when I have time". 

friolento

Emily_Joy said:

daveyjp said:

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?

Were there no red flags when first signing up letting people know this important fact and the downsides?

Until very recently for UK residents who need to pay and receive payments in different currencies, Revolut was about the only option.  

This is not my experience. Long before Revolut appeared on the scene, you could simply use any of the High Street banks or Nationwide for international payments. They were, and in the main still are, just a lot more expensive than specialist money transfer services such as Western Union, Currencyfair, and Wise (then Transferwise) all existed years before Revolut appeared on the scene. I have used Transferwise back in 2012. AFAIK, Revolut did not start until 2015. I still use Wise in preference to Revolut. I think a lot of Revolut’s success, and also a lot of its problems, is to do with crypto

Emily_Joy

friolento said:

Emily_Joy said:

daveyjp said:

Is there any insight into how Revolut managed to convince so many to sign up to them (and trust them with tens of thousands of their hard earned cash) as a fully regulated UK bank when until recently they weren't?

Were there no red flags when first signing up letting people know this important fact and the downsides?

Until very recently for UK residents who need to pay and receive payments in different currencies, Revolut was about the only option.  

This is not my experience. Long before Revolut appeared on the scene, you could simply use any of the High Street banks or Nationwide for international payments. They were, and in the main still are, just a lot more expensive than specialist money transfer services such as Western Union, Currencyfair, and Wise (then Transferwise) all existed years before Revolut appeared on the scene. I have used Transferwise back in 2012. AFAIK, Revolut did not start until 2015. I still use Wise in preference to Revolut. I think a lot of Revolut’s success, and also a lot of its problems, is to do with crypto

Is it possible to use Wise to receive payments, say, from an organisation in Denmark in Danish krona's and then spend the monies in Denmark without any losses?