As it launches its financial super app in the US, Revolut hits back at rumours circulating on social media that it is facing financial difficulties as a result of the Coronavirus outbreak.
The contraction in the economy caused by the Covid-19 pandemic has focused attention on the financial health of loss-making fintech firms as funding sources evaporate and exit options change significantly.
The issue has been compounded by a swirling rumour mill on sites like WhatsApp and Twitter, spreading disinformation and fake news about the outbreak.
In a statement responding to the wave of viral misinformation on social media, Revolut chief Nic Storonsky says: "The Coronavirus pandemic is causing unprecedented movement in financial markets. Naturally this can be alarming and can allow rumours and false information to spread quickly. To put your mind at ease, I’d like to make Revolut’s position super clear.
"Last month, we raised $500 million from investors. So I want to make clear that for Revolut it’s business as usual."
Pointing out that Revolut is a digital, cloud-based company, Storonsky says: "It’s fairly easy for us to arrange for our people to work from home. That means that our 2,000+ staff can and will continue to support you wherever they are and wherever you are."
A report published yesterday by Rosenblatt Securities forecast that the Covid-19 effect would have a devastating impact on fintech valuations. The analyst note estimated that a protracted downturn could wipe $76 billion of Unicorn market value and spur a wave of M&A activity in the sector. Marketplace lenders, digital wealth management firms and challenger banks would all be in the firing lines the report stated.
Revolut is not alone in bearing the brunt of fake news - rival challenger Monzo has also been in the wars, with rumours circulating that it was on the verge of collapse and not paying its staff. CEO Tom Blomfield responded bluntly: “Monzo is not going bust. Source: I am the CEO.”
The world might be reeling from the global pandemic, but Revolut continues to push boundaries, today launching its financial Super App and debit card in the United States. US customers can spend and transfer money globally at the interbank exchange rate, hold and exchange 28 currencies in the app, and get their salary two days in advance
Revolut intends to roll-out additional features and services in the near future, including cryptocurrencies, commission-free stock trading and savings products.
US customer deposits are FDIC insured up to $250,000, through a partnership with Metropolitan Commercial Bank.