Revolut planning to offer mortgages in Ireland later this year
Revolut has confirmed plans to start offering mortgages in Ireland by the end of the year.
The fintech, which has more than 3m customers in Ireland and this week reported global revenues of €3.7bn, is advancing plans to soft launch home loans before a full roll-out towards the end of the year.
The digital bank has a eurozone banking licence in Lithuania and began market testing there earlier this month when it issued its first home loans.
Speaking to the Irish Times, Revolut Europe CEO Joe Heneghan said the company would probably launch mortgages for testing in the third quarter before launch in the fourth quarter.
Revolut had previously aim to launch its mortgage product in Ireland in the second quarter of this year, but Heneghan had said it had proven difficult to predict in advance when the launch would take place.
The company will initially offer mortgages through its app, supported by staff over the phone, and may in future explore using brokers.
“We think the mortgage process that customers go through at the moment [generally] is unwieldy and can be made a lot slicker,” Heneghan said.
The three remaining retail banks held a combined market share of 92% and issued €12.6bn in mortgages last year.
Revolut made a profit of €1.3bn last year as customer numbers grew 38% to 52.5m. CEO Nik Storonsky said this week that the company is progressing towards 100m daily active customers in 100 countries.
Revenue increased across all business segments, with card payments up 43% to €820m, wealth rising 298% to €598m, foreign exchange increasing 58% to €499m, and subscriptions up 74% to €500m.
Interest incomes grew 58% year-on-year to €934m as a result of more effective management of increased customer deposits and expanded lending activities. Customer transaction volumes rose 52% to €1.2tn, and the company's retail monthly active users increased 42%.
Revolut is planning to roll out its mortgage product from later this year.
The Revolut Business segment has also grown, with the number of monthly active business customers surging 56%. Business customers contributed turnover of €547m or 15% of total group revenues last year.
In Ireland, customer balances rose almost 80% last year, and the company held almost €1bn in customer deposits. The group also launched its credit card, personal loan and pay later products, helping to growth its Irish loan book 54% year-on-year.
(Pic: Jakub Porzycki/NurPhoto via Getty Images)
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