Major change coming to Revolut for two million Irish customers and it's bad news for traditional banks

Global banking app Revolut is planning to issue Irish IBANs to two million customers in the state in major shake-up to the sector here.

The move will add extra pressure on mainstream Irish banks, as customers will now be able to have their employer pay their wages directly into their Revolut account.

Users of the app in Ireland are currently supplied with Lithuanian IBANS, due to the IBAN being issued by Revolut Payment UAB, which is a Lithuanian e-money institution.

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The switch to Irish IBANS will allow people in the country to carry out daily banking through the app in a much easier fashion, as some companies do not permit transactions to be made with a foreign IBAN.

Banks in Ireland will feel the pressure as Revolut has close to two million Irish customers registered on its books.

Customers of the global fintech giants will receive emails detailing the proposed changes this coming week, with the new IBANs set to begin with IE (Ireland) instead of LT (Lithuania).

While the move may impact mainstream banks within Ireland, most users are expected to continue availing of a Revolut account as well as staying with an Irish bank.

However, a newly introduced Revolut Loans section on the app will mean that new Irish IBAN customers will have everything at their fingertips, minus traditional counter service.

Customers will be given two months notice before their accounts will be migrated to Ireland.

The company has said that it plans to employ a small number of "senior staff" who will look after the firm's daily operations in Ireland.

Joe Heneghan, Chief Executive of Revolut Europe, said the company were proud to be opening an Irish branch.

“With over two million customers in Ireland, we are constantly looking for ways to improve our customers’ experience.

“Our customers can get their salaries paid directly into Revolut hassle-free, easily make direct debits, and more with the help of an Irish IBAN," he added.

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