I am not meaning to start a rumour mill or perpetuate one already running however I want to see what the response is from people who know the fintech and banking sectors well.
I received a text from a friend saying he has received numerous texts from people telling him that Revolut may be going under and to get his money out of it.
Has anyone else heard this and is it even a possibility? He says this is probably unsubstantiated and Iām aware that in times of crisis people often start malicious rumours for some reason and they tend to spread like wildfire in times of panic.
Itās an e-money license they operate under. So they have to hold your deposits under a nominee scheme at a bank. In Revolutās case Lloyds and Barclays.
Itās not FSCS protection, but itās as good as. Your claims for your deposits are paid above creditors.
I was being pedantic. I guess revolut are up front about their arrangement. Letās hope they have enough money in there to cover everyoneās deposits and not just dipping in and out when they need toā¦ I donāt know what controls there are around EMIs to ensure they have ALL the balances segregatedā¦
In theory ebanks are better placed than traditional banks in one respect, which is that by having no physical branches theyāre not exposed to any high street closures like traditional banks are.
The problem is at the first sign of trouble people will pull money out of neobanks into major banks. The government would be unlikely to save Revolut as it is not significant enough for the economy.
