Revolut's customers in Ireland are set to receive IBANs in the coming months following the online bank's decision to establish an Irish branch of its European business, Revolut Bank UAB.
The move should allow Irish-based Revolut users to have their salaries paid to their Revolut account at a time when the Irish banking sector is contracting with the impending exits of Ulster Bank and KBC Bank Ireland.
At present, the accounts of Revolut customers in Ireland have Lithuanian IBANs, making sending and receiving money more difficult. The company is set to begin migrating Irish accounts to Irish IBANs in the coming months.
Customers will be required to inform employers, social welfare payment providers, direct debit originators such as utility companies and other entities making and receiving payments to their accounts of the new IBAN, or risk payments failing.
"We’re proud to be opening our Irish branch soon," said Joe Heneghan, CEO Revolut Europe.
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"We recommend that our customers keep an eye out for an email from us over the coming weeks, as we roll out the IBAN migration of our customers in Ireland."
The fintech company said the move would make Revoluts "better suited to use as a primary account" and would end the "discrimination" experienced by users here, citing examples of employers refusing to accept an IBAN from a different country.
Revolut will begin sending emails to its customers in Ireland this week to inform them of how the transition will work, and the company will give users two months' notice that their accounts are to move.
The IBAN transfers will take place in phases, and once the changes have taken place, each customer’s Irish IBAN will replace their Lithuanian one.
The announcement comes after Revolut officially became a bank in Ireland last year, with deposits of up to €100,000 protected by the Lithuanian bank guarantee scheme. Revolut was granted an e-money licence by the Central Bank in late 2021.
Daragh Cassidy of Bonkers.ie said in transitioning to Irish IBANs Revolut had now addressed the two obstacles to consumers adopting its as their main bank, although it does not offer overdrafts.
"Although IBAN discrimination is supposed to be illegal, there have been numerous reports over the years of consumers having difficulty setting up direct debits and standing orders with utility providers if they had a non-Irish IBAN. Some also had difficulty getting paid into their accounts," Cassidy said.
"As a result, an Irish IBAN has long been requested by Revolut users and I'd imagine today’s news will be warmly welcomed by them. When effected, a Revolut account will be a viable alternative to AIB, Bank of Ireland and Permanent TSB for day-to-day banking.
Revolut's Irish branch will employ a small number of staff who will be responsible for the firm's operations in Ireland.
Revolut services will still be provided by Revolut’s European Bank, which is based in Vilnius and licensed by the European Central Bank and supervised by the Bank of Lithuania.
(Pic: Revolut)
