Revolut boasts more than 10 million customers globally, with 1 million users in Ireland alone (Irish Times, 2020). The fintech banking app has proved to be a huge success utilising big data to leverage its positioning over traditional banks. Its modern app with automated processes enables customers to request and make banking decisions instantly. The app has harnessed big data and presented it back to the customer to allow more autonomy and security over their banking. This includes: instant notifications confirming transactions, instant access via the app to secure their account, instant transfers to other Revolut customers, easy creation and management of budget categories as well as saving vaults.
The 3V’s of Big Data will be examined in the context of Revolut; these are: volume, velocity and variety.
Velocity can be defined as the speed at which data is created, collected and analysed. Speed is core to the success of Revolut’s business model, the fintech giant has automated several key processes for consumers. They can send and receive money to other Revolut users through the app within seconds. Budgets, spending categories and pockets can be created and organised through the app to manage financing. Similarly, customers can download bank statements, view their budget expenditure, trade cryptocurrencies and stocks all from their mobile device, without restriction of business hours. The In-App chat support service means queries can be logged and resolved efficiently without waiting on hold via the telephone. These automated processes ensure that Revolut can maintain excellent service and convenience to its rapidly growing customer base.
Volume refers to the sheer quantity of data acquired and processed. Revolut can gather more data than a traditional banking app and present it back to the consumer in a clear and useful way that helps them analyse their own finances. The ‘categories’, ‘pockets’ and budget functions assist the consumer to manage how and where they spend their money. The analytics gathered are also used for advertising, as seen with Revolut’s “Rewards” feature that offers customers cashback and discounts on brands, in exchange for gathering customer insights.
Revolut is an excellent example of stream data processing. Reporting and insights are available instantly for customers via the app. An example of this can be seen when a customer reaches their maximum spend on groceries, the app will automatically send a notification to alert the user.
The new Junior account offering allows parents to manage finances for their children and teach best budgeting practices. Another excellent feature is their “Linked” accounts, where customers can add bank accounts from other providers, allowing them oversight of their finances from the one app. Customers can also pay overseas in 150 currencies without charges and even opt to pay in the local currency, perfect for holidaymakers!
Further data hosted by Revolut includes structured data such as location and customer interests based on expenditure. Customer behaviour is gathered and can be utilized for advertising, as seen with their Rewards feature. Unstructured data examples include the pictures of receipts users can attach to payments in the Revolut app, their system logs, support chat logs and more.
Revolut has achieved a competitive footing in the fintech sector. They have revolutionised the way people bank, allowing greater security while leveraging more data to improve their customer experience. They are continuing to grow by delving into banking-as-a-service Baas), broadening their cryptocurrency offering and more. In short, they have mastered the art of leveraging big data to become a major competitor in the banking sector.
#FinTech #Banking #BigData #Budgeting
References:
Brennan, J. (2020) “Irish banks put €5.9m into app aimed at taking on Revolut, N26”, The Irish Times. Available at: https://www.irishtimes.com/business/financial-services/irish-banks-put-5-9m-into-app-aimed-at-taking-on-revolut-n26-1.4470389
Koerner, C. “An Introduction to Big Data”, Hubspot, Available at: https://product.hubspot.com/blog/an-introduction-to-big-data (Accessed: 30 January 2021)
O’ Brien, C. (2020) “Revolut says it has signed up a million users in Ireland”, The Irish Times. Available at: https://www.irishtimes.com/business/financial-services/revolut-says-it-has-signed-up-a-million-users-in-ireland-1.4251936#:~:text=Revolut%20has%20more%20than%2010,2%2C000%20people%20across%2023%20offices (Accessed: 30 January 2021).
Revolut (2021) About Revolut Available at: https://www.revolut.com/about-revolut (Accessed: 30 January 2021).
