[Trending News] The revolution opens a branch in Portugal and can already offer deposits with the National IBAN

Revolution has already opened a branch in Portugal and obtained an identification number from the National Bank (IBAN). It was the missing stage so that Fintech (name given to financial technology) can launch deposit accounts in Portugal, an objective that the institution has already said that it does not want this year. And that means that, contrary to what is so far supervised by Banco de Portugal (BDP).

The information is available on the BDP portal, which identifies the revolution as a “branch of the European Union credit institution”. The branch is located in Rua do Campo Alegre, Porto, while the headquarters will remain in Lithuania, where the revolution has a banking license, which has already allowed it to provide banking services in the various member states of the European Union for several years.

Earlier this month, it is remembered, the director general of the institution in Portugal, Rúben Germano, told Lusa that the company kept the intention to open a branch in Portugal and obtain a national IBAN later this year. Upon completion of this stage, the company is preparing to launch a deposit account at the Portuguese IBAN. The objective is the “customer's main account”, betting on the domiciliation of direct salaries and debts as services to be provided with the IBAN National Account. So far, Revolution operates in Portugal with IBAN of Lithuania.

In addition to deposits, the institution also intends to advance to segments such as housing credit and credit cards. Today, it already gives personal credit.

Currently, Revolution has 1.6 million customers in Portugal, hoping to reach two million this year, according to the information advanced by Rúben Germano to Lusa.

What changes to customers?

The revolution has been in Portugal for several years. First, with an electronic currency license (in practice, it was a mobile application, shift and transfers). Then, with a credit institution license that operates under the free provision regime – which meant it was a bank, operated with a license from the European bank (issued by Lithuania) and offered banking services.

But so far, it has not been covered by several requirements to which your competitors are required, such as the provision of minimum bank service accounts or contributions to the banking sector. Nor was it supervised by the BDP, which could create embarrassment to revolutionize customers in Portugal: any problem with this institution would have to be addressed to the Lithuanian authorities, where the bank is headquartered.

The opening of a branch and the predictable release of deposit accounts with the Portuguese IBAN come to change this scenario. According to information published on the BDP portal, “the availability of minimum banking services is mandatory for all credit institutions that provide the public services included in minimum banking services, banks, for example, economic boxes, Central Box and boxes of mutual agricultural credit ”.

On the other hand, and how the BDP explained to the public when the revolution began to work in Portugal in a free provision of fourth services is subject to Portuguese supervision. “BDP has the responsibility to supervise compliance with the rules of conduct applicable to the provision of bank services by institutions based here and those operating in Portugal through the branch,” explained the national regulator.

Regarding the guarantee of deposits (mechanism that protects deposits up to 100,000 euros in case of insolvency of a bank), will continue to be guaranteed by the authorities of Lithuania, where the revolution maintains the headquarters. According to the information provided on the BDP portal, the deposit guarantee fund “Deposits in credit institutions based in Portugal”, as well as deposits of “institutions based on countries not member of the European Union”. In the case of institutions based on other member states of the European Union, in case of insolvency, deposits are approached “by the country's guarantee regime”.

The public sent several questions to the Revolution, including when the company plans to launch the deposit accounts with National Iban and awaits the answer.