The battle of Revolut vs Freetrade


#1

Revolut prove once again their set to stir up a storm, & not just in the banking world. I’m thinking they could put Freetrade out of the water before they’ve even had the chance to make a splash?

https://www.ft.com/content/e066ca88-698a-11e8-8cf3-0c230fa67aec


#2

I’m not so sure (full disclosure, I’m about to start working for Freetrade) I doubt Revolut will try to build a complete trading solution & I expect they’ll simply bolt on the option to buy / sell & track the price of stocks & ETFs. That should be a good earner for them, as I’m sure some users will take advantage of how accessible the functionality is. But I believe that to build a complete service for investors, you need a standalone app & focused attention, as there’s lots more that you can do to really make this is a successful service, on top of the types of features that I’ve already mentioned.

Although Freetrade plans to expand into Europe too, I expect Revolut will make it there first - assuming that they are able to launch in every country that they’re already in. But Freetrade are due to launch in September (so sooner than the 4-6 months after June that’s mentioned in that story as Revolut’s target launch date), albeit for only the 40k+ users that’re on Freetrade’s waiting list, compared to Revolut’s 2m+ users.

But if they don’t build a ‘complete’ solution & especially if they only make this service available to subscribers to their premium product, I can’t see Revolut capturing the majority of the market.


#3

Funny but I can’t think of any equivalent yet on French market. Am I missing something?


#4

No, from a quick skim can’t seem to see any comparables in France. I do wonder how sustainable the models will be for pure broker plays, the scale and level of subscription required to sustain the business is significant. You can weather the cost of the acquisition period with mega VC backing as seems to be the current trend but over the long term I wonder how it will play out. For Revolut it forms part of a wider offering and so easier to swallow.


#5

https://www.uktech.news/news/industry-analysis/uk-fintech-must-compete-with-france-and-germany-2018071

Hi @hervelequer, I am not familiar with the French fintech scene and would love a quick ‘low-down’ of the top companies and market! From reading the article above I was shocked to read that the French government has created a €10bn FinTech start up fund.


#6

Hi @jb1, nothing like that! :slight_smile: Being French, I am quite used to big political announcements boiling down to very little in reality. There is nowhere near a 10 billions euros fund about to be invested in innovative French start-ups, fintech or not, as you can see in the link below (google translation). Mostly assets / funds being rebadged / transferred, I guess you would say that the mountain brought forth a mouse.

https://translate.google.com/translate?hl=en&sl=auto&tl=en&u=https%3A%2F%2Finvestir.lesechos.fr%2Factions%2Factualites%2Fle-fonds-pour-l-innovation-de-10-milliards-d-euros-mis-en-place-1733698.php

To be fair, the public investment bank (BPI France) is doing a hell of a lot to support French start-ups in many ways. Most, if not all the start-ups I invested in were actively supported by BPI France, incl in equity.

https://translate.google.com/translate?hl=en&sl=auto&tl=en&u=https%3A%2F%2Fwww.bpifrance.fr%2FA-la-une%2FActualites%2FBilan-d-activite-2017-un-grand-millesime-38945


#7

I will come back to you later on the landscape but nothing crazy / unique coming to mind. Biggest names I can think of on the investing scene are Younited Credit, Lendix, Wiseed, Anaxago and Finexkap. We also have a few strong payment players but I don’t really know much about them. Bankin and Linxo are leading the pack when it comes to accounts aggregation.