Revolut to begin offering personal loans - Midlands 103
Darragh Cassidy, Head of Communications at bonkers.ie, spoke with Will on Midlands 103 regarding Revolut’s announcement to offer alternative banking services to Ireland such as personal loans and credit card services. They discuss the new benefits Revolut will bring to the Irish banking market.
You can listen back to the interview above or take a look at the main points below.
A great day for the Irish consumer
Since the announcements that KBC and Ulster Bank are planning to leave the Irish market, there have been fears that the lack of competition in the banking sector will result in higher interest fees and charges for consumers. With rumours that EBS could be reducing its banking services in Ireland, and the decision by many retail banks to increase their monthly current account fees, it seems these fears may carry some weight.
This is why Revolut’s announcement that they will be offering alternative services in Ireland is great news for the Irish consumer and their personal finances.
Revolut is transforming the Irish banking market
Revolut has revolutionised the banking sector since it started operating less than a decade ago. Up until recently, it didn't offer some banking services such as loans or credit cards. Therefore, many people wouldn’t have considered Revolut for their day-to-day banking needs. However, with their announcement that they will begin offering credit services, this is expected to change.
It comes at a perfect time for consumers as KBC and Ulster Bank's impending exit from Ireland looms overhead.
Does Revolut currently operate in Ireland?
Yes, it does. However, it operates under a Lithuanian banking licence, so Irish customers have a Lithuanian IBAN or current account number.
Unfortunately, this can cause issues at times because certain companies, suppliers, or employers don’t recognise these numbers. As rumours circulate that Revolut will be able to offer an Irish banking number in the future, there is hope this issue will disappear in the coming months.
How does Revolut compare to other banks in Ireland?
Revolut compares extremely well to other lenders in Ireland. It is a low-cost account and is of excellent value.
Some of its benefits include:
- No monthly account fee
- No direct debit account fee
- No standing orders fee
- No chip and pin fee
- No foreign exchange transaction fee up to €1,000 a month
There are, however, hefty fees associated with Revolut if you withdraw more than €200 per month. So if you are a person who likes taking out a lot of cash, Revolut is not the provider for you.
Prior to Revolut receiving its Irish banking licence, it only provided current account services. However, you will now be able to take out a credit card with Revolut. It has opened a waiting list for personal loans.
There is hope that in the near future they will offer personal loan opportunities and overdraft services.
Will Revolut get into secured lending and offer mortgages?
There is currently no word that Revolut will branch into the mortgage market. Mortgage lending is a complex business and would require Revolut to put aside a lot of money in order to offer this service, which I believe is unlikely to happen in the near future. However, you can never say never.
It is true that there is a tendency for consumers in Ireland to prefer to get their mortgage from their current account provider, but this does not have to be the case.
In fact, for those of you considering taking out a mortgage, at bonkers.ie we would encourage you to look beyond your current account provider as there are many options out there. For instance, Avant Money offers the best mortgage rates on the market at the moment, yet they do not offer any current account services.
You can compare and discover the best mortgage interest rates on the market for free if you use bonkers.ie free mortgage comparison tool. It is a quick, easy and 100% impartial service, and will provide you with accurate mortgage lending information.
Take control of your personal finances
You can take control of your personal finances today by using our range of free comparison tools to find the best banking providers and interest rates for you. Whether you are looking to open up a current account, savings account, get a credit card or take out a loan,our comparison tools have got you covered.