Revolut, a challenger bank headquartered in London, will be transferring its clients located in Central and Eastern Europe to a new European entity in Lithuania, as the company prepares for the impact of Brexit .
In an email sent out to affected clients, Revolut said that in order to protect its customers from the effects of Brexit, it would be moving relevant clients to an entity called Revolut Payments UAB, an institution handling electronic payment instruments, operating under a license from the Bank of Lithuania.
According to the email seen by Finance Magnates, this Lithuanian entity has the same rights as Revolut Ltd, the firm's UK entity, and passports them throughout Europe. The Bank of Lithuania will be the supervising entity to which complaints can be submitted.
"Today we will start the process of transferring our clients in Central and Eastern Europe to a new European entity. The good news is that you don't have to do anything on your part. We will take care of everything and let you know when the move to our European entity will take place," the UK fintech said in the email (translated).
"In this way, we will ensure that you can continue using Revolut services regardless of Brexit's impact. You will continue to have access to all services and features, and your funds will rest safely in protected accounts with partner banks."
Revolut secured Lithuania license in 2018
Revolut has attracted over 10 million customers in just a few years by building a financial hub that allows them to spend, send, receive, and manage money from a single app.
One of its key features is that one can convert from one currency to another based on interbank rates with no fee. Customers can hold foreign currencies in their accounts or send money to another Revolut user or a bank account outside of their country.
As Finance Magnates reported, Revolut secured its license in Lithuania at the end of 2018, as part of its Brexit contingency plan. Lithuania is a country that has been aggressively pushing itself as a fintech-friendly destination.
Under the license, the company's clients are covered under the European Deposit Protection scheme, which protects their funds and pays back up to €100,000 per user.
