Revolut has entered Britain’s unsecured personal loans market, reported
Reuters citing the company’s UK chief executive Francesca Carlesi.
xThe London-based digital bank is offering unsecured personal loans from £2,000 ($2,670) to £25,000.
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The loans carry annual rates of between 6.9% and 29.3% and can be repaid over one to five years.
“We want to transition from being a very successful everyday spending app and disrupting the market, to become effectively the primary bank of choice for everybody in the UK,” Carlesi said.
The company will initially offer loans to a limited group of customers before extending the product to its 14 million UK customers over the coming months, added the news agency.
To support its underwriting, it has bought information from external providers.
The company will increase lending gradually and has not set a target for the size of its UK loan book.
It plans to transfer much of the associated risk through securitisation, with the aim of keeping its loan-to-deposit ratio close to 6%, Carlesi said.
Revolut plans to introduce a credit card product in the “near future”, the report added.
Carlesi said the company eventually intends to enter Britain’s mortgage market.
Founded in 2015 by chief executive Nik Storonsky and Vlad Yatsenko, Revolut has more than 80 million customers worldwide and a private valuation of $115bn.
Earlier this year, Revolut Bank UK was given the green light by the Prudential Regulation Authority to move forward from its mobilisation phase, allowing it to operate as a fully licenced bank in the UK.
