Can Revolut Sell Your Personal Data in 2024?

In today’s digital age, the value of personal data has risen significantly. Companies like Meta and Google have built extensive empires by monetizing user data, while others like Apple prioritize the protection of user data. Surprisingly, banks have now entered this arena, despite the expectation of inherent confidentiality in their operations. Banking organizations possess a wealth of precise data regarding customer habits, making them valuable resources in the data monetization debate.

Revolut, in particular, has come into focus recently. In an interview with Financial Times, Antoine Le Nel, head of growth at Revolut, revealed that the neobank is exploring the possibility of monetizing user data to generate an additional revenue of 347 million euros by 2026. He views Revolut as a platform with a captive audience and valuable data that can be leveraged for targeted advertising tailored to user profiles and consumption habits, offering advertisers a lucrative opportunity.

The shift in Revolut’s economic model reflects a desire to diversify income sources. Neobanks attract customers by charging lower fees than traditional banks and focus on market expansion. Despite a decline in valuation from billion in 2022 to around billion in 2023, Revolut reported a profit for the second consecutive year in 2022, albeit reduced from previous years. The neobank anticipates significantly higher profits in 2023.

In an effort to diversify income streams, Revolut has introduced new services like an eSIM service and may soon offer real estate loans to customers. The neobank has also enabled cryptocurrency trading and exchange within its application. However, the decision to potentially monetize customer data has raised concerns. Revolut clarifies that while they do not sell personal data to third parties, they use it internally or share it with partners for targeted advertising. Customers have the option to opt-in to receive personalized ads and notifications and can easily withdraw consent at any time through the app’s privacy dashboard.

Overall, the evolution of Revolut’s revenue strategies underscores the importance of adapting to changing market dynamics and customer needs. While the monetization of user data presents new opportunities for revenue generation, transparency and user consent remain paramount in maintaining trust and accountability in data practices.