Fintech company Revolut has opened a waiting list for customers in Ireland looking for personal loans, marking its first steps to launch Revolut Bank services in Ireland.

This follows the decision by the European Central Bank to grant Revolut a full banking license last December. The company now plans to launch loans and other bank services such as credit cards to its 1.7m customers in Ireland later this year.

Revolut said Irish customers will be able to apply for loans instantly without needing to fill out complex forms and receive an answer on the loan within seconds. Loans will also be available for new customers.

Revolut Europe CEO Joe Heneghan said the company hopes to offer more competition and innovation in Ireland.

“With the imminent withdrawal of KBC and Ulster Bank from the market, it is clear that a new bank is needed to compete with legacy banks on price and service,” Heneghan said. “Customers can now register their interest in a Revolut Personal loan, and we look forward to delivering more innovative products this year.”

Deposits held in Revolut Bank will carry deposit guarantee protection of up to €100,000 per user backed by the Lithuanian Deposit Guarantee Scheme. The fintech company moved its Irish accounts to Lithuania at the end of 2020, as its UK e-money license was facing issues due to Brexit.

To date Revolut Banks has launched in 28 European countries. Pricing details have not yet been released for either loans or credit cards with Revolut Bank in Ireland.

Changes to the banking sector

Commenting on the news, Daragh Cassidy, head of communications and PR at Bonkers.ie, said the Irish banking sector was looking “fairly bleak” with the imminent exits of both Ulster Bank and KBC, along with EBS rumoured to be pulling back on some of its services.

“So to say this is good news for consumers here is an understatement,” Cassidy said. “Revolut has literally revolutionised the banking sector since it started operating less than a decade ago. However, until now, many people still only used their accounts for sending money or when travelling abroad.”

Cassidy added that people were probably reluctant to consider Revolut for their full banking needs, due to its lack of credit products and its lack of a banking licence in Ireland.

“But this is likely to start to change and it will be interesting to see how the main Irish retail banks: AIB, Bank of Ireland and Permanent TSB react,” he said. “Up until now, the Irish banks have been slow to react to the advances of Revolut (and N26) in the market. But as both these banks continue to offer more day-to-day “traditional” banking services that will have to change.”

Cassidy expects Revolut Banks’ rates to be “extremely competitive” and a “flawless” application process but was disappointed that no information on an overdraft has been announced. He added that this would be a “key requirement” for many people looking to switch accounts.

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.

The post Revolut set to become new competitor for Irish banks appeared first on Silicon Republic.