Revolut revenue increased 95% in 2023

The Revolut banking group's revenue increased 95% to over €2 billion, up from over €1 billion in 2022. Pre-tax profit reached €503 million, and net profit grew to over €395 million, up from €7 million in 2022. 

As they detail in a statement, the net profit margin for the year was 19%, reflecting the inherent efficiency and scalability of Revolut's business model, improved partner unit costs, and continued growth in high-margin revenue streams. For its part, Revolut's revenue diversification continued to drive sustainable growth, with no single product stream or country accounting for more than 30% of total revenue in 2023.

During the year, Revolut added nearly 12 million new customers globally, the largest year-on-year increase in the company's history. This brought the total to 38 million in 2023.

Specifically, 70% of new customers joined organically or were referred by someone they know. This word-of-mouth growth was complemented by increased investment in marketing and sales functions, including Revolut Business, whose year-end growth rate was 20,000 SMEs onboarded per month. They stress that this growth was consistent across all revenue streams of Revolut's diversified business model, with a growing number of customers increasingly using the group's products.

Total customer deposits increased from EUR 15 billion to EUR 21 billion. On the other hand, due to expanded treasury capacities, increased customer balances, higher central bank rates, and growth in the credit portfolio, interest income grew to 575 million compared to 97 million in 2022.

Customer usage accelerated, with transaction volume increasing by 58% to nearly 804 billion. Monthly transactions totaled 590 million as of December 2023, an increase of 73%. In this context, the group highlights the growing number of customers who have fully used Revolut services through paid subscriptions, with 41% growth in customers opting for a paid plan.

The era of the virtual banks? 

The company has also expanded into new markets, including Brazil and New Zealand, bringing its global presence to 38 countries.

The 100% Digital Banks – also called virtual banks – market in Europe is projected to grow by 4.34% (2024-2029), resulting in a market volume of US$0.47tn in 2029.

With slight differences between countries, middle-income citizens dominate the digital banking market worldwide. In Spain, for example, we are talking about 53%, one of the highest rates in Europe. 

In the United States, where the percentage rises to 62%, the banking system is especially aggressive with the working classes, highly divided and pushed to contract numerous banking products and pay high commissions. It is estimated that each citizen in this country needs between 5 and 7 accounts to manage their money. 

This in fact is why neobanks even appeared, aimed especially at this target, rectifying the traditional banking methods: unifying savings, spending, and loans (which has a positive impact on a society as indebted as the one in the United States) and helping to regain control while reducing financial stress.