Revolut Partnering with Cross River to Offer Personal Loans
Fresh from a massive funding round, Cross River Bank is continuing its FinTech rise, announcing a new partnership with the neobanking app Revolut. As a result, the popular platform will be rolling out a new feature that will allow users to apply for personal loans. Revolut customers will be able to check current loan rates with no impact to their credit. These loans will apparently have no late fees, origination fees, or prepayment penalties.
According to the press release, Revolut has begun notifying users if they’ve been preselected for personal loan offers. However, they add that all U.S. customers have the ability to apply for Revolut loans “in the coming months.”
Originally launched in its native United Kingdom, Revolut is an app that allows customers to trade and hold various foreign currencies. More recently, the platform has added support for cryptocurrencies, stocks, and more. Additionally, the service bundles other benefits such as lounge access, travel insurance, and other perks into some of its paid plans. Incidentally, Revolut already partners with Metropolitan Commercial Bank and Sutton Bank for various offerings and has also applied for a bank charter of its own.
As mentioned, the partnership between Revolut and Cross River Bank comes as both companies have continued to expand and attract investors. Last July, Revolut closed an $800 million Series E while Cross River raised a $620 million Series D last month. In fact, the latter investment ranked as the third-largest raised by a FinTech company last quarter according to the latest CB Insights report.
Commenting on the partnership, Cross River’s EVP and Head of FinTech Banking Adam Goller said, “At Cross River, we’re always looking for new and innovative ways to provide access to credit. Our partnership with Revolut is instrumental in facilitating responsible financial solutions to consumers, and we’re excited to be powering Revolut’s U.S. expansion.”
Similarly, Revolut U.S.’s Head of Lending Tarun Bhushan stated, “At Revolut, we’re building the world’s first global financial superapp so the move into credit and personal loans is a natural next step. Revolut has developed technology to provide loans instantly to approved customers, with no origination fees – so customers can get the credit they need, when they need it. We’re thrilled to partner with Cross River to offer U.S. consumers an even more diverse range of financial services with the launch of our intuitive and hassle-free personal loan product.”
In recent months, both Cross River and Revolut have demonstrated their desires to branch out. Thus, this partnership makes a lot of sense for both companies. As for customers, it remains to be seen whether these personal loan products will be competitive enough to make sense. Nevertheless, it’s another interesting development from two FinTechs with their fair share of headlines in recent months.