According to the Wise Finance APP, the UK fintech giant Revolut plans to spin off its €8.5 billion (approximately $9.5 billion) wealth management business into a separate application in an attempt to compete with companies like Robinhood (HOOD.US) and eToro, and to gain a larger share in the retail market.

It is reported that the application called Revolut Invest will initially offer nearly 5000 different assets, including US and European stocks, Exchange Traded Funds (ETFs), commodities, bonds, as well as new products like Contracts for Difference (CFDs). Revolut states that stock and bond investments will incur a fixed fee of 0.25% or 1 euro, while fees for CFDs may vary.

Revolut's Wealth and Trading Manager, Rolandas Juteika, mentioned that the application is currently undergoing testing in Greece, Denmark, and the Czech Republic, and is set to be launched in other eurozone countries by the end of the year. He added that the plan includes doubling the number of tradable assets within the same timeframe.

Revolut's latest move is part of CEO Nik Storonsky's ambition to establish what he calls a "truly global bank." In this vision, Revolut aims to offer all financial services and compete with industry giants like JPMorgan (JPM.US) and Barclays (BCS.US).

At the onset of a global interest rate reduction wave, Revolut hopes to attract a large number of retail investors returning to the market through this new trading platform. The company enters an increasingly crowded space where players like Robinhood, eToro, Trading 212 Group, and Freetrade have made a mark, while newcomers face challenges. However, Revolut's scale can help it establish a strong foothold in this field.

Established in 2015, Revolut, after its recent second stock offering, has reached a valuation of $45 billion, more than twice the market cap of Robinhood. The company also plans to go public with an initial public offering (IPO).

Although Revolut has allowed retail investors to trade on its main banking app, with the independent app, Revolut will be able to target new customers who have not yet used its banking services, helping to open up to a wider range of retail investors. The company also offers an advanced subscription service called Trading Pro, which provides lower commissions, higher trading limits, and analytical features. Data shows that about 5% of Revolut users are considered active users trading more than once a week, and about 0.02 million users subscribe to Trading Pro.

According to Revolut's latest annual report, as of the end of June, the company has about 45 million customers, with over 30 million users already using its investment services. Rolandas Juteika stated that the assets managed by the company's wealth product management nearly doubled, from 3 billion euros at the end of 2023 to 8.5 billion euros.

Over time, Revolut will expand its Revolut Invest app to other jurisdictions, with the company already obtaining relevant licenses in the United Kingdom, USA, Singapore, and Australia.