[Trending News] Revolution opens branch in Portugal and can now offer deposit accounts with national IBAN

Revolution has already opened a branch in Portugal and obtained a national bank identification number (IBAN). It was the missing step so that the fintech (Name given to financial technology) may launch deposit accounts in Portugal, an objective that the institution has said to want to comply with this year. And it means that, contrary to what so far, it is supervised by Banco de Portugal (BDP).

The information is available on the BDP portal, which identifies the revolution as a “Credit Institution branch based in the European Union”. The branch is located at Rua do Campo Alegre, in Porto, while the headquarters will remain in Lithuania, where Revolution has a banking license, which has already allowed him to provide banking services in the various Member States of the European Union for several years.

Revolution clarified to the public, through an official source, that the process has only started, still missing the necessary operation: “We have been permission since 2022 so that the branch in Portugal can be opened – this permission given by Banco de Portugal. However, the branch is not operational, nor are we offering deposit accounts with national IBAN. We are working in this regard “.

Earlier this month, it is recalled, 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. After this step is completed, the company is preparing to launch a deposit account with 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 National IBAN account. So far, Revolution operates in Portugal with Iban of Lithuania.

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

Revolution currently 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?

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

But so far, it has not been covered by a number of requirements to which their competitors are obliged, such as the provision of minimum bank service accounts or contributions to the bank sector. And it was also not supervised by the BDP, which could create embarrassment to revolution customers in Portugal: any problem with this institution would have to be addressed to the authorities of Lithuania, where the bank is headquartered.

The opening of a branch and the foreseeable launch of deposit accounts with Portuguese IBAN come to change this scenario. According to the information published on the BDP portal, “the availability of minimum bank services is mandatory for all credit institutions that provide the public the services included in minimum bank services, ie banks, economic boxes, central boxes and boxes of mutual agricultural credit “.

On the other hand – and as the BDP explained to the public when the revolution started to act in Portugal on a free service regime – fintech It is subject to Portuguese supervision. “BDP has the responsibility to supervise the compliance with the rules of conduct applicable to the provision of banking services by the institutions based here and those acting in Portugal through branch,” the national regulator explained.

Regarding the guarantee of deposits (mechanism that protects deposits up to 100,000 euros in case of insolvency of a bank), it will continue to be ensured 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 in countries not member of the European Union”. In the case of institutions based in other European Union Member States, in case of insolvency, deposits are covered “by the guarantee regime of the country of the respective headquarters”.

News updated with clarifications from revolution