The UK-based neobank Revolut has taken a significant step in its larger push into the African continent by appointing former Uber general manager Amine Berrada to spearhead its entry into Morocco.
The action was taken as part of its continuous efforts to obtain full operating licences in South Africa and Morocco.
Revolut’s expansion to Morocco
Revolut, which was established in 2015 and currently has 60 million customers worldwide, is valued at about $45 billion. The business has started assembling a team in Morocco in order to submit an application for a license from the central bank of the nation, Bank Al-Maghrib.
“Revolut continues to explore growth opportunities in new markets as part of our mission to provide our app to customers around the world,” a spokesperson told Asharq Business via email, in a report published on Sunday.
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“We are evaluating the Moroccan market and consider it an attractive market, allowing us to provide unique value to customers in the future. However, we are still in the early stages of the process,” it added.
The London-based fintech company has added Morocco to its list of Middle East and North Africa expansion targets, along with the United Arab Emirates and Saudi Arabia.
Along with cryptocurrency, foreign exchange, and other financial products, Revolut provides savings, deposit, borrowing, and investment services worldwide.
Challenges before Revolut
Revolut will join a comparatively developed financial sector in Morocco that has just lately started to embrace digital finance.
However, the business must carefully customise its multi-currency services for compliance and relevance due to the dirham’s non-convertible status and stringent Bank Al-Maghrib oversight.
Notwithstanding these challenges, Morocco is a strategic starting point due to its closeness to Europe, expanding digital transformation agenda, and robust diaspora corridors.
With its more competitive remittance and digital banking services, Revolut’s arrival has the potential to completely change the financial landscape.
Revolut’s plan to obtain full operating license in South Africa
Revolut is reportedly in negotiations to obtain a full banking license in South Africa, which would greatly broaden its range of business beyond e-wallets and remittances. With a highly regulated environment shaped by laws like the Protection of Personal Information Act, stringent foreign exchange controls from the South African Reserve Bank, and intricate tax compliance requirements, South Africa presents its own set of difficulties.
Additionally, the neobank will have to contend with fierce competition from established firms. With more than 10 million clients, TymeBank is the leader of a thriving digital banking ecosystem that also includes fintech infrastructure companies like Ozow and Stitch, Discovery Bank, and Bank Zero.
Revolut’s long-term plan
Revolut’s actions, however, suggest a long-term plan. By obtaining full licenses and making investments in local leadership, the business communicates that Africa is a crucial growth frontier rather than a short-term endeavor.
It is anticipated that Morocco, with its distinct combination of opportunity and regulation, will act as a testbed for localisation, guiding a phased rollout into the larger North and sub-Saharan African markets.