Revolut is one of the most well-known e-money account providers, and it offers a wide-range of services.
Yet, if you've ever used any kind of financial service or platform on your mobile phone or computer, you'll understand how much safety is a concern — especially if you're topping your account up with significant sums of money.
Over the last decade, there's been a notable shift from traditional banking methods towards digital alternatives, whether that's because they're cheaper for international transactions or they're in-app services and tools and so effective.
Along with Revolut, which is a Lithuanian-based financial technology company (Revolut Bank UAB), there's also Starling and Monzo along with a host of other providers.
In this article we'll be looking at some of Revolut's main features and what security measures it has in place to get a clearer understanding of whether it's a safe platform for your finances.
What Is Revolut?
Revolut, founded in 2015, is an e-bank that provides a range of financial services, including currency exchange, international transfers, and even cryptocurrency transactions. Users are drawn to its user-friendly app, low-cost transactions, and the promise of a borderless financial experience.
Here we'll look at two of the main areas where Revolut is working to keep customer accounts and money safe:
Encryption and Data Protection
One of the cornerstones of Revolut's safety measures is robust encryption. All data transmitted between the Revolut app and its servers is encrypted using industry-standard protocols.
This ensures that sensitive information, such as personal details and transaction data, remains secure and private.
Read Also: How Does Revolut Work?
Integration and Risks
Along with Revolut's personal account and business account, it is also possible to buy, sell, and hold cryptocurrencies within the app. Not all banks or e-money providers allow this because of the inherent risks involved with the crypto market.
Whether it's crypto currency scams, or how volatile the market is in general, cryptocurrency isn't exactly known for being the safest financial asset to get involved with.
Revolut takes a fairly proactive approach to safeguarding your cryptocurrency, given that the majority of it is stored offline, in cold storage so your exposure to any kind of online threats or hacking attempts is reduced.
You've also got the option of turning on extra security features for any assets you have in your hot wallet via the website or app, such as two-factor authentication (2FA).
Is Revolut a bank?
Technically speaking, Revolut is not a bank but a e-money provider. It has recently gained a UK banking licence by the Prudential Regulation Authority (PRA) and this means it has to follow certain rules when it comes to managing and protecting customer money.
However, it is not covered by the Financial Services Compensation Scheme (FSCS). This protects up to £85,000 in cash held in a bank account if a bank were to go bust. This doesn't mean your money isn't protected though, and it also authorised to follow the UK Electronic Money Institution.
Revolut uses a strategy called ‘safeguarding', and customer money is kept in a ring-fenced account. This essentially means that in the event any kind of ‘e-money' institution (i.e. Revolut) fails, your funds will be returned to you from a ‘dedicated safeguard account'.
Revolut for Personal Users
Whether you download the Revolut app or visit their website, one of the first things you'll be met with is the option to select either a personal or business (freelancers and self-employed users, for instance) account.
Unless you are opening the account for business purposes, you'd be better off with the personal account.
It has a range of extra features to choose from, including a currency exchange feature, which gives you fairly competitive rates for converting money. This makes it a popular option for anyone who might be travelling and has to deal with foreign currency regularly or make international money transfers.
Of course, the added convenience of using the platform for online payments, the budgeting tools, and getting a sleek Revolut card for in-person payments add to the appeal, too.
Also Read: How to Open a Revolut Personal Account Online
Revolut for Businesses Users
Revolut has a great range of accounts for business users so if you're a sole trader or you are a freelance worker, it could be a good option. There are several accounts to choose from, each with different features and fees.
Once you sign up for one of their specialised business accounts, you'll be able to manage all of your expenses in particular areas that you've categorised — such as utility bills, rent, groceries, etc. You can also easily send money abroad with Revolut, and receive plenty of different financial insights for your account (all in real-time).
Also Read: How to Open a Revolut Business Account in 2024
Revolut for Traders
Although we've mentioned the role that cryptocurrency trading has on Revolut's platform, further financial assets are available for you to trade — stocks, for instance.
It allows users to trade in a range of different stocks, from Apple to Tesla, for those interested in having a hand in the stock market.
However, though it can certainly be tempting to get involved in investing in the stock market with your Revolut account, it's advised you only commit to investing a relatively insignificant amount of money until you've gained enough experience trading successfully. Investing in any asset can be risky and there is no guarantee you will make a return on your investment – and you could lose it altogether.
Ultimately, despite all of the safety concerns regarding Revolut's financial protections, perhaps the least safe quality of this financial platform is the potential to lose a meaningful amount of money in the stock or crypto market that's accessible via the app or website.
Regulatory Oversight
As touched on, there is generally a degree of scepticism over whether Revolut is legit or not, given that it's only recently received its banking licence.
However, it is regulated by the Financial Conduct Authority (FCA) and the UK Electronic Money Regulations.
It also adheres to strict standards, providing users with confidence in the security and legality of their financial transactions. Having said that, this slightly unconventional approach to financial services might not be for everyone, so make sure you feel totally comfortable before using the platform.
Revolut Accounts and Cards
Revolut is pretty flexible with the accounts it offers, and there are a range of services included with each. Prices vary too, from the free standard plan to an ‘ultra' plan which costs £45 per month.
Before choosing an account you'll want to look at what is included in it, and decide if the extra perks are something you would use and that you can't get them cheaper elsewhere. The following accounts are available with the personal account:
- Standard (free)
- Plus (£3.99/mth)
- Premium (£7.99/mth)
- Metal (£14.99/mth)
- Ultra (£45/mth)
If you want a physical card with your account, you may have to pay extra for this. There are also plenty of options for business users and for those interested in trading.
Final Thoughts
It's understandable to have some concerns if you're unfamiliar with using a financial platform such as Revolut before, and the fact that there has been some controversy over the platform's lack of FSCS protection.
Having said that, our final verdict is that there's fairly minimal reason to have qualms with Revolut or the way that they operate in general.
Whether it's their business or personal account services, you're gaining access to a platform with multiple free options in terms of membership as well as a litany of quality financial tools. It also stands up when it comes to financial protection and although it's not covered by the FSCS, it does have pretty robust safety features in place.
Yet, ultimately it's your decision and it's important to choose an account you're comfortable with, one that is affordable, and one that provides you with the features you will use.
Also Read: Best Revolut Alternatives In The UK
