Revolut Explores Sharing Customer Data with Advertisers Amid Losses and Pending License

Revolut, the London-based fintech company, is examining plans to monetize customer data by sharing it with advertising partners as it seeks to diversify revenue streams. The company aims to generate £300 million in revenue from advertising by 2026, despite reporting a £25 million pre-tax loss in 2022.

Revolut's head of growth, Antoine Le Nel, said the company could become a "media business" where it monetizes its audience and data. The fintech giant has hired Inam Mahmood, former head of ecommerce partnerships at TikTok UK, to lead a sales team of about 30 people focused on executing this media strategy.

The move comes as Revolut's application for a UK banking license remains in limbo. The company is looking to establish a more substantial revenue stream while it awaits regulatory approval. In addition to the advertising plans, Revolut is also exploring expanding its services, potentially into lending.

Why this matters: Revolut's data-sharing plans highlight the increasing trend of fintech companies seeking alternative revenue sources beyond traditional banking services. The move also raises questions about data privacy and the use of customer information for targeted advertising.

Revolut's entire business generated revenues of £923 million in 2022, but the company faces challenges in demonstrating sustainable profitability. The fintech firm has recently secured preliminary authorization from the Reserve Bank of India to issue Prepaid Payment Instruments in the country, expanding its reach and offerings in the Indian market.

Some experts express caution, noting that deep daily customer engagement is crucial for effectively monetizing ancillary revenue streams like advertising. Revolut is taking a strategic approach by integrating targeted advertising, boosting user engagement, and broadening its non-banking services, such as launching a mobile phone e-SIM for travelers.

As Revolut navigates the evolving fintech landscape and awaits its UK banking license, the company's push to share customer data with advertisers marks a significant shift in its business model. The success of this media strategy will depend on Revolut's ability to balance data monetization with user privacy concerns and maintain customer trust.

Key Takeaways

• Revolut plans to monetize customer data by sharing it with advertisers.
• Revolut aims to generate £300M in ad revenue by 2026 despite £25M loss in 2022.
• Revolut hired a former TikTok exec to lead a sales team for its media strategy.
• Revolut's UK banking license application remains in limbo, prompting diversification.
• Revolut's data-sharing plans raise concerns about privacy and targeted advertising.