Business Model Canvas – Revolut

Revolut is a digital, branchless challenger bank based in the UK that offers frictionless low-fee banking and free intra-currency transfers for both consumers and businesses.


How Does Revolut Make Money?

Revolut offers free Basic bank accounts, and subscription Premium accounts that cost £6.99 per month/£70 per year (€7.99/€82), and Revolut Metal accounts that cost £12.99 per month/£120 per year (€13.99/€135). #Subscription

Revolut will also charge you 0.5-1.5% exchange rate fee between currencies on weekends only. During the week it is free. Similarly, they allow you to draw out money free from ATMs, but only up to certain limits depending on the account (ie. £400 per month on premium); therefore, while Revolut is free/low-fee sometimes, customers are time-limited and rate-limited for certain services. #RatchetFees

They also offer value-added services, similar to traditional banks but at cheaper rates. They allow users to trade Cryptocurrency (for a 1.5% upfront fee) and offer P2P loans at 9.9% APR. #Services

Finally, Revolut offer Business accounts with added options for business, many of which are far more seamless than traditional banks. #Business

Community-Centric or Commercial-Partner Strategy?

Revolut seems to have achieved it’s rapid Unicorn status (2015 > 2018) by focusing on community referrals and product virality.

“Here at Revolut, we don’t believe in big marketing budgets for acquiring new users. Instead, we focus our time and resources on building a kick-ass app that has virality written all over it. Essentially, our users are our marketing budget.”

Revolut Blog

They have a strong online community ( and generally seem to be willing to do anything to spread the Revolut Gospel via community, even if sometimes it means crossing some lines and creating an aggressive culture; nonetheless, Revolut is a community-first brand with a loyal and rapidly growing user-base. 42% of Revolut’s user base is between 25 and 35. The company surpassed 3 million users in just over 3 years. (Currently at 7mn users as of Q3 2019).

Fundraising and Valuation

Last year, the company was valued at $1.7bn USD. Speculation is that the company will try and raise $500mn this year at a valuation north of $2.5bn.

“The company, co-founded by CEO Nikolay Storonsky in 2015 and last valued at $1.7 billion, operates in 28 European countries and has reportedly been in talks with SoftBank.”


Part of the company’s fundraising strategy was linked to a very successful equity crowdfunding campaign that raised £4mn and was oversubscribed in 24 hours.

Only disclosed P&L numbers are £12.8mn Revenue with a £14.8mn loss in FY’17. Main valuation metrics disclosed are users and transaction volume:


Revolut Business Model Canvas

A business model is defined as:

“the rationale of how an organization creates, delivers and captures value.” 

Alex Osterwalder et al invented the Business Model Canvas to help individuals and organizations conceptualize how to analyze, create, and develop business models.

Value Proposition

Banking redefined:

  • No Fee/Low Fee Banking
  • Frictionless, feeless FX currency transfers across multiple global currencies
  • Branchless banking, strong digital app and easy money transfers across multiple mediums