The David Rubenstein Show
00:01:12 · Nik Storonsky, David Rubenstein
[00:01:12] S1: I actually started alone. So I built a product, I hired a team, then one fire first siture that I hired, so later made him or I think it was till seventeen eighteen. I made him co founder as well because it was easier for him to kind of, you know, recruit engineers if he had title co founder. [00:01:32] S0: So you start the company and the mission you had was to enable people to do what that they couldn't do. What was your purpose in starting a company? [00:01:42] S1: So I was a trader back then, and then I'm very quick in calculating numbers in my head. And then every time when I went abroad or when I send money, I could instantly calculate, okay I lost here, ten dollars, fifty dollars and so on. And my initial idea was to build a product, a simple up with a cut at tasted that allows you to spend money anywhere in the world at interomand create so saving effects to fifty to seventy dollars and every one thousand dollars that you spent. [00:02:10] S0: In other words, you weren't trying to convert people's currency. You were letting them have a card that would enable them to buy something and whatever currency they wanted. [00:02:19] S1: Yeah, so it's both right. You can pre exchange currency or you can buy directly from your existing currency. [00:02:27] S0: Normally throughout Europe. When you go to Europe, you see everywhere currency exchange places and they always charge a fee. I don't remember what it is, six seven percent. So you decided to start a currency exchange business without charging a fee.
00:02:27 · David Rubenstein, Nik Storonsky
[00:02:27] S0: Normally throughout Europe. When you go to Europe, you see everywhere currency exchange places and they always charge a fee. I don't remember what it is, six seven percent. So you decided to start a currency exchange business without charging a fee. [00:02:42] S1: You can call currency exchange businesses intermand create without charging a few. [00:02:47] S0: Correctly, you didn't go out and build a physical bank. You did it all online, is that right? [00:02:52] S1: Exactly? [00:02:52] S0: Yeah? So how did you get people to know about this service? Did you start advertising online anything? [00:02:57] S1: We didn't spend any single marketing for the was five to some years for being in operation, so it was all a road of mouth. So I remember when I finally launched the product. It was somewher twenty fifteen, and I physically, you know, I was selling my product to friends, family, even on people I don't know. [00:03:19] S0: Okay, So if I go to one then today and I say, here's ten dollars and I wanted to change it on a regular place that I would get back pounds minus about a six seven eight percent fee. So if I went on your service, what would I get back if I when I get back everything with birth CERTA essentially no fee exactly. Then you make the money in effect on the float because you're getting paid by somebody, and then you kind of can invest that money and then you don't have to pay somebody for a while. Is that how you make the.
00:03:19 · David Rubenstein, Nik Storonsky
[00:03:19] S0: Okay, So if I go to one then today and I say, here's ten dollars and I wanted to change it on a regular place that I would get back pounds minus about a six seven eight percent fee. So if I went on your service, what would I get back if I when I get back everything with birth CERTA essentially no fee exactly. Then you make the money in effect on the float because you're getting paid by somebody, and then you kind of can invest that money and then you don't have to pay somebody for a while. Is that how you make the. [00:03:51] S1: Money several time when you were spent with a cod MESSI defectly pay pays two to three percent. Yeah, okay, well that's not customer pain but rather a business itself. But I want to be clear that was initial product in twenty fifteen. Now, especially for your customers, we have fully kind of licensed digital bank providing all kinds of services. [00:04:13] S0: You have a European banking license, now, is that right? [00:04:17] S1: So we have European Bank all so we are regulated by European Central Bank. We have a UK banking license regulated by PRA. Then we also have multiple other licenses for example Mexico, Columbia, Toison. [00:04:30] S0: And you're now applying for a US banking license. Correct, How long does it take to get a US banking license? [00:04:36] S1: Right now? It should take out up to twelve months, but again it depends, so official target is four months. But then there are multiple steps involved, it can be longer.
00:04:36 · Nik Storonsky, David Rubenstein
[00:04:36] S1: Right now? It should take out up to twelve months, but again it depends, so official target is four months. But then there are multiple steps involved, it can be longer. [00:04:47] S0: Are you confident that you can get a banking license in the United States? You think you'll get it? [00:04:52] S1: I think it's obviously much easier for us given a new administration, plus that we have so many other banking licenses, plus we have a bank lesson you Cano, So for us it became much easier compared to two years ago. [00:05:04] S0: Do you have a credit card business as well? [00:05:06] S1: You will have credit cars in several markets, yes. [00:05:09] S0: Is that? And you have credit cards and debit cards. [00:05:13] S1: We have debit casts in every single market and the credit cards I think in five or six markets. So in Europe have twenty percent plantration, so one out of five adults in Europe they use Revolut cars and then as certn mIRC as we have much high penetration. For example, in Ireland we have four out of five adults using Revolut. [00:05:32] S0: So younger people seem to like things that are called cryptocurrencies. Are you involved in cryptocurrencies? Do you trade cryptocurrencies or make markets for people? [00:05:42] S1: So as a business, we have a pretty large crypto currency business. I think we are the largest. We have the largest crypto business in Europe with our volumes personally, I don't speculate crypto, but I use it sometimes, you know, for transfers.
00:05:42 · Nik Storonsky, David Rubenstein
[00:05:42] S1: So as a business, we have a pretty large crypto currency business. I think we are the largest. We have the largest crypto business in Europe with our volumes personally, I don't speculate crypto, but I use it sometimes, you know, for transfers. [00:05:59] S0: So in the United States, what do you hope to be able to do with your banking license if you get it? What is the market gap that you think you can feel that maybe others aren't doing. [00:06:09] S1: So basically I mentioned a radioh retail business. So it's one simple up where you can do everything what you need for your financial life. And then second direction, well also provide the revolute business accounts for businesses. And again it's end to end services that you need to run your business. So payments, banking, credit will come as well, wealth management or treasury, well call it treasury, then acquiring as well. So for example, right now, if I'm an American company, I'll need to stop say Stripe for acquiring, then JPMorgan for my business banking. Then you know, something else for payouts, something else for payroll. So we provide all these services in one product. [00:06:49] S0: Well, if you conquer the US the way you've conquered the UK and Europe, is China next, or you're not going to focus on that?
00:06:49 · David Rubenstein, Nik Storonsky
[00:06:49] S0: Well, if you conquer the US the way you've conquered the UK and Europe, is China next, or you're not going to focus on that? [00:06:57] S1: Eis your way Definitely focusing, So spending a lot of time studying Asia and then as a sarch. So we applied it for multiple banking licenses in Asia as well, and then some of them but we got already. And then China is on the least as well. You know, one day I hope we can set up a business there. [00:07:12] S0: Now, some people have written that your bank revelute is worth seventy five billion dollars? Have you ever thought of taking your organization public? [00:07:21] S1: But the way I think about it will be ready to probably in two year's time. But then again depends on how good the market is. [00:07:31] S0: Bench you don't have an IPO, how do people who work for you make some money? You make a market for people to sell their shares internally? [00:07:38] S1: Yeah, so we do secondaries every one or two years when people can sell certain portion of their stocks to excel investors. [00:07:47] S0: So you've done secondary sales for your employees, so employees can then get some liquidity. Do you expect before you go public you'll do any more of those or you're just going to wait to you go public before you liquefy any more stock. [00:07:59] S1: Yeah, I think so we might do secondaries as well before we do IPO, because we do it every one or two years. So we might do a second results.