“Potential Sale of Customer Data Being Considered by Nobank in 2024”
Revolut, a well-known neobank, is exploring new avenues to boost its revenue by considering selling its users’ data to advertising partners. This move is projected to bring in an additional 347 million euros in revenue by 2026.
The concept of a financial institution not only offering financial services but also leveraging user data for advertising purposes may seem unconventional. Still, Revolut sees this as a strategic opportunity to tap into targeted advertising. The data collected from user interactions within the application can provide valuable insights into user behavior and interests, allowing for more effective targeted ads.
With the potential revenue from this data monetization strategy, Revolut aims to attract new investors and demonstrate its capability to achieve sustainable profitability. Despite facing a loss of 29 million euros in 2022, the neobank is optimistic about its future growth. With its valuation showing fluctuation, now estimated to be around billion by the end of December 2023, Revolut is keen on expanding its revenue streams through targeted advertising and possibly introducing ad spaces within its application.
Moreover, in addition to the financial implications, Revolut also aims to integrate seamlessly into its users’ daily routines. By becoming a part of their digital ecosystem alongside social media platforms like Instagram and email services, the neobank hopes to enhance user engagement and interaction.
This strategic shift towards data monetization reflects Revolut’s forward-thinking approach to stay competitive in the rapidly evolving fintech landscape. As the neobank navigates this new territory, it remains to be seen how this decision will impact its positioning in the market and its relationship with users.
