00:17:24 · Fred, Vlad Yatsenko
[00:17:24] S2: do everything right when entering new markets, you're probably gonna be at like your third market or maybe fourth market by this time of your journey. Now you're in more than 30 markets. So what does that balance between let's say risk and reward or however you wanna slice it look like as a starter? It's not something that other companies have been able to do from what we see. [00:17:43] S1: Public credit is the sooner we start, the sooner we'll learn. Yeah. Because in in the beginning, it's a lot of unknown. Yeah. Because there's a lot of unknown, you cannot even plan it. Yeah. Some markets were tougher maybe than the others. In in Europe, it's a lot simpler like we... From the beginning until recently, it was simple. Yeah. Upreading with the [00:18:04] S2: Not sure what you're talking about there. Just kidding.
00:18:04 · Fred, Vlad Yatsenko
[00:18:04] S2: Not sure what you're talking about there. Just kidding. [00:18:08] S1: No. It's... Yeah. Few months ago, the main word on everyone's tongue was open banking. Now it's the background. Now Brexit is is taking over. Yeah. Reaching the deadline. Still, it's... In European markets, it's it's More straightforward. Yeah. More straightforward. The the complexity is more like, again, it's where the problem is where... Which we we came to solve the variety of languages, currencies, etcetera, within kind of small space where people travel easily all the time and work in countries not where their residents kind of official are, etcetera. When we go to markets outside of Europe, so there's a lot of new learnings. Like US has been quite a tough one. The understanding of what we're trying to achieve, maybe all the problem itself, maybe not always the same, we would say for partners locally. Yeah. And what's the biggest challenge? State of technology as well Mhmm. It's different. State of payment systems Right. Is is quite different as well. [00:19:13] S2: Well, is it more of a technology challenge in The US, for example, or more of a regulatory challenge?
00:19:13 · Fred, Vlad Yatsenko
[00:19:13] S2: Well, is it more of a technology challenge in The US, for example, or more of a regulatory challenge? [00:19:18] S1: In in US, so our approach in US, start first with a partner and work on license and paralysis. So it is a challenge, but it takes long time. Yeah. Yeah. Maybe a lot longer than in in one European country. Yeah. By the way, you can then passport in all the other countries. So this is kind of a known challenge. Technology wise, it's... US is quite different. Yeah. We found card schemes work differently. The payment processing, so we had to build on payment processing. It wasn't related just directly to that, but to go into US markets, that was like a big prerequisite to build our connectivity to payment schemes. It works on different protocol as well compared to Europe and some other countries. Different payment schemes, different level of the banks. You partner as well in US, they don't have maybe the same level of exposure to technology, and it's not often outsourced. There's not as much of standardization as well as in Europe. So if you look at Europe in general, maybe Western Europe has more legacy. Eastern Europe looks a lot better in terms of technology, in the whole banking infrastructure. Because those banks, they started when USSR fell apart, right? Like just thirty years ago or so. It's fairly new compared to one hundred plus years Western economy. So US maybe has this legacy problems as well quite a lot.
00:20:57 · Adam, Vlad Yatsenko
[00:20:57] S0: You like super quickly touched on it, but how has open banking changed what you guys think of? Because you're in a pretty interesting position where you're both someone who needs to contribute to it and actually provide data to other institutions. But I think you guys are also a user of some of that data as well too. So think you guys have a pretty interesting perspective. [00:21:16] S1: The moment we start when you would have APIs to access frictional, not just through the app, etcetera, but we started thinking some about it slightly differently where there's actual needs. Like when we started business product API was that it's like in early days of the product there. So business could automate more of their process, etcetera. With Revolut users, it's slightly different story. With open banking, when it comes again, it's some people confuse it that, okay, everyone can fully access, automate, you know, the account, maybe link it, know, using different tools that help you to do quick automations. And the reality is that you as individually cannot do that. Only third parties. You allow third parties to to do that on your account. It's kind of a bit limited, but at the same time, it's a controlled environment where every third party has to be verified. It's one element the regulators pushed for it, but at the same time it's kind of because not all players in the markets saw it as a benefit for them directly. For one time it was like push back. Mhmm. That's... Know, because they they know they are not in the same situation in terms of knowledge. Right?
00:21:16 · Vlad Yatsenko, Fred
[00:21:16] S1: The moment we start when you would have APIs to access frictional, not just through the app, etcetera, but we started thinking some about it slightly differently where there's actual needs. Like when we started business product API was that it's like in early days of the product there. So business could automate more of their process, etcetera. With Revolut users, it's slightly different story. With open banking, when it comes again, it's some people confuse it that, okay, everyone can fully access, automate, you know, the account, maybe link it, know, using different tools that help you to do quick automations. And the reality is that you as individually cannot do that. Only third parties. You allow third parties to to do that on your account. It's kind of a bit limited, but at the same time, it's a controlled environment where every third party has to be verified. It's one element the regulators pushed for it, but at the same time it's kind of because not all players in the markets saw it as a benefit for them directly. For one time it was like push back. Mhmm. That's... Know, because they they know they are not in the same situation in terms of knowledge. Right? [00:22:30] S2: Has it been a a driver of of growth or useful for your platform in Europe? [00:22:34] S1: So far experience was, I think some guys shared on social, open banking partners who have integrated API. And whenever they have questions, they're like, very super happy quoting what we wish. Yes. Other player in open banking was was like... Yeah. It's... So that's on, like, the
00:22:34 · Vlad Yatsenko, Fred, Adam
[00:22:34] S1: So far experience was, I think some guys shared on social, open banking partners who have integrated API. And whenever they have questions, they're like, very super happy quoting what we wish. Yes. Other player in open banking was was like... Yeah. It's... So that's on, like, the [00:22:55] S2: opening your... The data of your users for them to to consume it elsewhere. But on the flip side, has it been useful to get your hands on data of your user's bank account from them? [00:23:04] S1: So how how we look at it, it's... For us, it opens this opportunity as well where... Which we're working on linking all the accounts into your Revolut account. Because just the way how the structured... How we structured everything, how the app works. It fits in fairly naturally. It's gonna be... Not gonna be a full blown at least this stage platform, but more like an easy way to simplify top ups. For instance, there are issues how topping up with cards, it doesn't always work. It doesn't offer always best user experience, especially when there is three secure verification in the process. And then it's not kind of always there. So we're hoping that this will solve that problem. Just make this whole thing, topping up Revolut account or maybe even look at it as maybe an easier transition to moving to Revolut as your main account, your primary account as well. Yeah. As changing your bank account, regardless how bad you think your your bank's UX is, it's it's very hard decision for most of people. [00:24:17] S0: You have automatic payments and [00:24:18] S1: stuff coming in.