With our partner Salesforce, unify sales, marketing and customer service. Accelerate your growth!
The London fintech, Revolut, valued at 33 billion euros in 2021, continues to diversify its banking services by announcing its entry into the real estate loan market from 2025. The company aims to transform this segment still dominated by bureaucratic processes, with a promise: to offer instant approval for simple files and a final offer within 24 hours.
A market with high potential
The European real estate loan market represents several trillion euros of outstanding assets, with annual volumes of around 1,500 billion euros. Demand remains strong despite rising interest rates, particularly in countries like France, where nearly 6.5 million real estate transactions were financed on credit in 2022. Revolut intends to capture a share of this market by banking on its technology to simplify and accelerate loan granting processes.
We were unable to confirm your registration.
Your registration is confirmed.
A three-step deployment strategy
The launch of real estate loans will begin in Lithuania, where Revolut already has a solid base thanks to its European banking license obtained in 2018. In Lithuania, the fintech is targeting a market where average approval times still range between 2 and 3 weeks. The next targeted countries are Ireland and France, two major markets in Europe, where Revolut will have to adapt its offer to specific regulations and specific consumer expectations.
A technology-based model
Revolut will integrate artificial intelligence to automate file validation and drastically reduce delays. While traditional banks often take between 30 and 60 days to finalize an offer, Revolut promises a solution within 24 hours for simple requests, take-it-or-leave-it offers.
The company aims to capture a young and connected clientele, attracted by speed and transparency. However, for complex files, particularly those of self-employed workers or liberal professions, Revolut must develop systems with a level of precision equivalent to that of traditional banks.
A demanding regulatory framework
Real estate loans in Europe are strictly regulated, in particular by European directives on mortgage credit. Revolut will have to ensure that its tools meet standards in terms of transparency, reimbursement capacity, and consumer protection. In France, for example, checks include strict debt ratios and extensive income checks.
Key figures to remember:
- Average time to obtain a home loan in traditional banks: 30 to 60 days.
- Time announced by Revolut for a simple file: 24 hours.
- Amount of outstanding mortgage loans in Europe: +5,000 billion euros.
- Share of real estate loans in traditional banking products: 40% on average.
