The institution, which has a banking license in Lithuania, but operates throughout Europe, will start testing the service in the near future, and later it will start providing housing loans in other European markets.
Revolut Bank manager Joe Heneghan told “Verslo žinias” that the Lithuanian housing loan market is attractive for development because there is no great competition and higher interest rates prevail than in Europe. According to him, Revolut will aim to provide housing credit at lower margins than other banks.
“Our intentions are to be competitive in terms of price,” J. Heneghan told the portal.
According to him, the amendments to the law adopted by the Seimas last week, which simplified the refinancing of housing loans, are favorable to the bank. The manager of “Revolut Bank” explained that there is really no housing refinancing market in Lithuania, and due to legal changes, it is becoming more attractive to new market participants.
Adopted amendments to the Law on credit related to real estate provide that people who want to refinance their loans need only contact a new bank, which will carry out most of the refinancing procedures.
Revolut Bank, registered in Lithuania, operates in 30 European Economic Area (EEA) markets, the company is licensed and regulated by the European Central Bank and the Bank of Lithuania.
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Interview with Joe Heneghan, Bank Manager at Revolut Bank
Interviewer: Thank you for joining us, Joe. Revolut Bank is set to test a new housing loan service in Lithuania. What drove the decision to launch this service in the Lithuanian market?
Joe Heneghan: Thank you for having me. The Lithuanian housing loan market is particularly attractive to us for several reasons. Firstly, there’s a growing demand for innovative banking solutions among consumers. Secondly, Lithuania’s robust regulatory framework provides a stable environment for expanding our services.
Interviewer: Interesting! How does Revolut plan to differentiate its housing loan service from those offered by traditional banks in the region?
Joe Heneghan: Our approach is centered on leveraging technology to provide a seamless and user-friendly experience. We aim to simplify the loan application process, allowing our customers to manage everything through our app. Additionally, we want to offer competitive rates and personalized services that cater to individual financial situations.
Interviewer: You mentioned plans to expand the housing loan service to other European markets later on. Which countries are you considering, and what factors will influence your decision?
Joe Heneghan: We’re currently evaluating several potential markets based on criteria like customer demand, market conditions, and local regulations. We look for countries where we can offer value and meet consumer needs effectively—places where our technology and services can make a real difference.
Interviewer: As a bank with a focus on innovation, what challenges do you anticipate as you roll out this new service?
Joe Heneghan: Essentially, the main challenges will be navigating regulatory compliance and ensuring a smooth user experience. Adapting our services to meet varying consumer needs across different markets can also be tricky. However, we are committed to overcoming these challenges and delivering a valuable service to our customers.
Interviewer: Thank you for your insights, Joe. It will be exciting to see how Revolut shapes the housing loan landscape in Lithuania and beyond!
Joe Heneghan: Thank you! We’re looking forward to it as well.
Services that cater to the specific needs of our customers. By minimizing margins, we believe we can establish ourselves as a more appealing choice for potential borrowers.
Interviewer: You mentioned competitive rates. With your strategy to provide housing credit at lower margins, how do you foresee this impacting the existing competition in the Lithuanian market?
Joe Heneghan: We anticipate that our entry will encourage a more competitive environment, ultimately benefiting consumers. Higher interest rates in Lithuania compared to other European markets present an opportunity for us to offer better pricing, which should motivate traditional banks to rethink their offerings. Our goal is to drive down costs for borrowers and increase accessibility to housing loans.
Interviewer: The recent amendments to housing loan refinancing laws in Lithuania seem favorable for Revolut’s entry. Can you share how this will affect your operations?
Joe Heneghan: Absolutely! These changes simplify the refinancing process significantly. Borrowers can now approach us directly, and we’ll handle most of the refinancing procedures on their behalf. This ease of transition will not only attract new customers to Revolut but also encourage existing borrowers to reconsider their refinancing options. We’re excited about the potential for growth this brings.
Interviewer: Looking forward, what’s next for Revolut Bank in terms of expanding its housing loan services across Europe?
Joe Heneghan: Our focus is on launching the pilot program in Lithuania first, ensuring we refine our offerings based on customer feedback. After establishing a solid foothold there, we will explore opportunities in other European markets. Our long-term vision is to enhance our presence across Europe, providing innovative and accessible banking solutions wherever we operate.
Interviewer: Thank you, Joe, for sharing your insights. We look forward to seeing how Revolut’s new housing loan service evolves in Lithuania.
Joe Heneghan: Thank you for having me! I’m enthusiastic about what’s to come and the positive impact we can have on the housing loan landscape in Lithuania and beyond.
