Revolut is taking what appears to be a distinctly conservative path on credit even as it builds out a full banking presence in more countries. Rather than following the traditional model of recycling large volumes of customer deposits into loans, the fintech intends to keep that activity tightly limited, according to comments from its chief executive in a FT interview.
Nik Storonsky said the group’s loan-to-deposit ratio currently sits near 6 percent—far below the levels typical at conventional banks, which often operate close to 100 percent.
He indicated Revolut does not expect the figure to rise above 10 to 20 percent.
Any loans the company originates would generally be sold onward, either in full or through securitization, so that credit risk does not remain on its own books.
The explicit aim, he explained, is to run the business with “effectively zero risk.”
That stance is notable because most banks generate a substantial share of earnings by lending deposits.
Revolut has instead built the bulk of its revenue from fees, subscriptions, payments, foreign exchange and wealth products.
Interest income still accounts for a minority of the total.
The company has grown its modest loan book—personal loans, cards and a small mortgage offering—but the portfolio remains tiny relative to customer balances, which expanded sharply in the latest reported year.
The approach comes after a long stretch of regulatory scrutiny.
Revolut spent years securing a full UK banking licence and has continued to navigate licensing and oversight requirements across Europe and beyond.
It has also faced a recent security incident in which an unauthorized party obtained personal and account details for roughly 680 customers.
Those affected included a number of higher-net-worth users identified in part through cryptocurrency activity.
Revolut has said its core systems and customer funds were not compromised and that it has contacted those involved.
Despite those setbacks, management remains focused on scale and product breadth.
The firm has added millions of retail and business customers, increased the number of people who treat Revolut as their main account, and rolled out additional services in payments, savings, investing and, in selected markets, lending.
It now operates as a licensed bank in dozens of countries and is pursuing further licences, including in the United States.
Customer balances have grown rapidly, yet most assets continue to sit in cash, cash equivalents and high-quality treasury holdings rather than loans.
Storonsky has framed the strategy as a way to capture profitable, lower-risk segments of consumer finance while leaving heavier credit exposure to others.
The model has supported high reported returns on equity once excess capital is excluded, and the company has discussed a potential dual listing in London and New York at a valuation that could rise further. Whether the low-lending posture can sustain long-term growth as Revolut becomes a larger, more conventional bank will be tested by regulators, competitors and customers.
For now the Fintech focused company is betting that disciplined balance-sheet management, fee diversification and continued customer acquisition will prove more durable than a rapid expansion of credit.