Comprehensive Business Development Plan for Revolut Ltd. (2024)

This report presents a comprehensive business development plan for Revolut Ltd., a prominent FinTech company. The plan focuses on the introduction of commission-free trading services to enhance customer loyalty and expand market presence. The report includes an in-depth market research analysis, exploring target markets, customer segmentation, and accessibility. It assesses organizational and financial feasibility, including sales projections and funding requirements. A strategic analysis examines internal strengths, competitive advantages, and the business model canvas. The report also reviews the business plan, addressing legal, financial, and risk issues, along with proposed actions and critical success factors. The plan aims to position Revolut for sustained growth and competitiveness in the financial technology sector, particularly in the UK, Europe, and the United States, against competitors like Trading212 and Robinhood.

BUSINESS DEVELOPMENT
PLAN

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the research..............................................................................................1
1.2 Chosen Scenario...............................................................................................................2
1.3 The business opportunity..................................................................................................2
1.3.1 Rationale for the business idea.................................................................................3
1.3.2 Target Market, Customer and Accessibility.............................................................3
1.3.3 Business Model.........................................................................................................4
1.4 Structure of the work........................................................................................................5
CHAPTER 2: THE BUSINESS OPPORTUNITY..........................................................................6
CHAPTER 3: FEASIBILITY .........................................................................................................8
3.1 Market Research Methodology........................................................................................8
3.1.1 Defining the research problem..................................................................................8
(a) Problem formulation....................................................................................................9
(b) Aim of the current market research..............................................................................9
3.1.2 Design for the market research.................................................................................9
3.1.3 Information types and sources that are required.......................................................9
3.1.4 Proposed methods of data analysis.........................................................................10
3.1.5 Formulation of findings..........................................................................................12
3.1.6 Ethics Issues............................................................................................................12
3.2 Market research to identify business opportunity..........................................................12
3.2.1 Exploratory research...............................................................................................13
3.2.2 Market Segmentation..............................................................................................13
3.2.3 Market Accessibility...............................................................................................15
3.3 Industry/market analysis.................................................................................................15
3.4 Organisational feasibility................................................................................................17
3.5 Financial feasibility........................................................................................................19
Estimation of first year's sales.........................................................................................19

Funding requirement for the business proposal...............................................................19
Initial year's sales for break-even attainment..................................................................20
Sales required for payback in years 2-4...........................................................................22
Sales required for Pay-off i.e. excess of 150% ROEI in five years' time........................22
3.6 Resource sufficiency......................................................................................................22
Financial..........................................................................................................................22
Technical..........................................................................................................................23
Human Availability.........................................................................................................23
Physical office.................................................................................................................23
Organisational Business relationships.............................................................................23
Government approvals.....................................................................................................23
CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL.........................................24
4.1 Internal Analysis.............................................................................................................24
4.2 Sources of competitive advantages................................................................................26
4.3 Concepts in strategy which could be used......................................................................27
4.4 Business model...............................................................................................................29
CHAPTER 5: BUSINESS PLAN REVIEW.................................................................................31
5.1 Overall assessment of the business plan.........................................................................31
5.1.1 Product/Service idea...............................................................................................32
5.1.2 Legal issues.............................................................................................................32
5.1.3 Financial requirements............................................................................................33
5.1.4 Risk Issues..............................................................................................................33
5.1.5 Marketing matters...................................................................................................34
5.1.6 Organisational Feasibility.......................................................................................34
5.1.7 Overall resource sufficiency...................................................................................35
5.2 Proposed Plan of Action.................................................................................................35
5.3 Discussion of critical success/failure factors..................................................................36
CONCLUSION..............................................................................................................................36
REFERENCES..............................................................................................................................37

CHAPTER 1: INTRODUCTION
A Business Development Plan is being considered as a document that delivers
information related to decisions that are needed to be made based on development strategy
(Blackburn, Hart and Wainwright, 2013). Through this, it can be said that an organisation may
directly grab a good position at marketplace in short period of time frame. Basically a business
development plan is developed for the purpose of long term success. Specifically, scope of a
business development plan mainly consist of both sales along with marketing functions because
they stay connected to each other within an organisation in any industry.
In present report, a business development plan is going to be developed for Revolut Ltd.
which is coming under financial technology sector of United Kingdom. Company offers a range
of banking services to the users including pre-paid debit cards, peer to peer payments,
cryptocurrency exchange. It is a mobile application that basically supports money spending,
withdrawals considering around 120 currencies. With the help of business development plan,
Revolut Ltd. Is directly going to attain different business opportunities in specific time frame.
1.1 Background of the research
United Kingdom's one of the famous Fintech company named as Revolut Ltd. Was found
in the year of 2015 by Nikolay Storonsky and Vlad Yatsenko. It is a mobile application which
offers offers banking services to its users, and speciality of this Fintech company is that, it offers
cryptocurrency exchange as well (Bournaris, Moulogianni and Manos, 2014). However,
cryptocurrencies basically kept locked within the mobile application only. That means it cannot
be moved to any other cryptocurrency wallet. Company has already given a range of services
related to finance, to its users but now they are looking forward to improve customer base and or
keep them loyal against the financial services offered by them. Along with this, it can be said
that cryptocurrency feature has definitely played a part in their growth, and their financial
marketplace of products have also helped hugely in catching eyes of people and made them feel
to join Revolut. Marketplace of this industry, gives users access to insurance and credit products
from a variety of providers, similar to a feature offered by rivals like Starling.
Revolut Ltd. is presently available in Europe with 630 staff members, and is most widely
used in United Kingdom. The firm is looking to expand its presence to the U.S., Canada,
Singapore, Hong Kong, Australia and New Zealand within months (Burns and Dewhurst, 2016).
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In this case, a business development plan is going to be formulated for Revolut Ltd. in order to
gain competitive advantages and to improve existence of the company not only in United
Kingdom but in other European and others countries as well like Germany, France, United States
and more. For this purpose, Revolut Ltd. is going to launch commission-free trading services for
its users. That means, users of Revolut Ltd. will directly get the opportunity of investing money
in places where they can get high range of returns on investments.
1.2 Chosen Scenario
In past two years, Revolut Ltd. did not saw a hike in their revenue and profit margins as
well. This made board of directors of the company to bring innovation among its services and
decided to launch commission - free trading services for its users (Casey, Glennerster and
Miguel, 2012). With the help of this, board of directors believe that company, customer loyalty
can be attained as the targeted customers (service users) that are looking forward to invest their
money in different industries will start using commission - free trading services offered by
Revolut Ltd. The basic need of bringing innovation in its services is that, Revolut has already
doubled its user count just in few months after it said it had passed the 1 million user mark in
November 2017. But then also, company's expectation did not meet as Revolut had the idea of
tripling the amount of existing users through the services that were offered by the company.
This, made the organisation to think upon planning commission-free trading services in order to
improve profit margins and to give competition to its rivals like U.K.'s Trading212 and United
States' organisation like Robinhood.
1.3 The business opportunity
"For many years, people were not been able to trade or invest among different areas and
this happened because of high fees or high taxation rates on transactions. Focusing on this
scenario, Revolut has kept its focus on making the investments much more cheap, simple and
completely over a mobile. Nikolay Storonsk, co-founder of Revolut has mentioned that, bringing
commission-free trading service as a value added service or a core service in the existing
services that had been offered by Revolut Ltd. will directly help them in improving customer
loyalty, base and reputation as well at international market (Chan and Park, 2015). Along with
this, it is being found that this innovative approach, will also help Revolut Ltd. in cutting out
nearly all costs that are typically associated with investments. Apart from this, since trade off is
free. Thus, Revolut Ltd. directly offers both web and mobile trading, the platforms are purposely
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bare bones, and some investors may find the range of trade related securities and account options
lacking. This made Revolut Ltd. to rebuilt its services and to add service like commission-free
trading where users can directly invest a good range of money and can expect high return on
investment (Chatterjee and Finger, 2014).
This can be taken as a business opportunity that would aid Revolut Ltd. in reaching to
new heights where company may give good rivalry to its rivals like Starling, Robinhood,
Trading212 and so on. Along with this, it has also been analysed that commission-free trading
services will also help both clients as well as Revolut Ltd.
1.3.1 Rationale for the business idea
In present time, most of Fintech companies in all over the world do not offer
commission-free trading services to their clients (on mobile application). Therefore, bringing in
this commission-free trading services within Revolut Ltd. would aid them in reaching to new all
new heights. As the company was also looking forward to grab a good position not just in
domestic but in international market as well (Croitoru, 2012). Thus, offering financial service
like commission-free trading will directly start aiding Revolut Ltd. in giving good rivalry to its
competitors. The basic reason behind implementing this kind of business idea is that, Revolut
Ltd's customers loyalty will improve with them because, users of their mobile application are
looking forward to invest their money, may easily start investing their money among share
market or other commodity markets based on their interests. Through this kind of business idea,
Revolut Ltd. will directly start hitting its targets and will gain good reputation at international
marketing in a really very short span (Dahlgaard and et. al., 2013).
1.3.2 Target Market, Customer and Accessibility
In present context, where Revolut Ltd. has made modifications among mobile application
where a new service is being added of commission - free trading services. Under this case,
company targeted the customers (mobile users) that are looking forward to invest money and are
having a valid current or brokerage accounts. If the users are not having a brokerage account, the
service offered by Revolut Ltd. would not be able to trade single stocks commission free
(Dimitriou, Voskaki and Sartzetaki, 2014).
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On the other hand, mostly, company is also going to target using behavioural approach of
segmentation, because investment is a factor that cannot be done by every single person. Here,
Revolut Ltd. Will directly target customers based on their behaviour through promoting the new
service in different areas from digital market to regional one (Dudin and et. al., 2014). The best
strategy of targeting the investors (targeted users) will be the existing mobile application of
Revolut Ltd. where company will grab the attention of clients that have an intention of investing
their money among different areas. Along with this, company is also going to offer people that
are having either one of them accounts like individual or retirement based account. This is
basically being done for the promotional based perspectives. Revolut Ltd. Has also given a value
added service to targeted users with a toll free number where any query regarding eligibility and
others as well (Dunning, 2013).
On the other hand, accessibility will only be given to the users that are having current
accounts or brokerage accounts, because then only mobile application will show them on which
company they need to invest, Along with this, Revolut Ltd. As developed this approach, this will
aid organisation in gaining or grabbing a good reputation at both European and United States
marketplace.
1.3.3 Business Model
The Business Model Canvas (BMC) is being considered as a graphic representation of a
number of variables that show the values of an organization. A Canvas can be used as an
effective strategy tool when it comes to analyse or evaluate the situation that an existing business
organisation is having. In present case, Revolut Ltd. has kept its focus on business expansion in
United States considering commission - free trading as their additional service that they are
going to offer to targeted customers (Finch, 2013). Away with this, there are some of the key
partners as well that enabled Revolut Ltd. to bring commission - free trading as one of an
essential service that could help company in giving good rivalry to competitors among different
countries like U.S. Along with this, in order to take right decisions so that Revolut Ltd. do not
face any sort of issue, a business model canvas has been used which will help in overlooking into
the existing situation of overall business of Revolut Ltd.
Under this case, where Revolut Ltd. needs to keep its focus on a range of factors that are
a part of business model canvas and these are: key partners, key activities, key resources, value
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propositions, customer relationships, channels, customer segments, cost structure and lastly
revenue streams which will aid in analysing their current position in the market and through this,
they can also find out the gap as well in between current and desired position. Through this,
Revolut Ltd. could directly make determinations in short span (Frankenberger and et. al., 2013).
1.4 Structure of the work
Conceptual framework is the blueprint for all the activities which are conducted in a
research (Groves and Hinton, 2013). In this research proposals, investigation using Revolut Ltd.
is conducted which is classified into five chapters which are mentioned below:
CHAPTER 1 : INTRODUCTION – In this section of work, an understanding about the
research topic is developed. Introduction refers to the overview and background of the research
which provides understanding about the topic (Halme, Lindeman and Linna, 2012). On the other
hand, report has also included a range of information like background of Revolut Ltd., purpose
of business plan and so on are some of factors that has been included in this section. Along with
this, business model canvas has also been developed for the purpose of reducing the number of
barriers and so on.
CHAPTER 2 : THE BUSINESS OPPORTUNITY – Under this section, various
sources are analysed in order to build an understanding about desired objective which has been
developed by Revolut Ltd. This section is basically enclosed with a range of decisions that
company needs to make in order to gain many competitive advantages while using commission -
free trading services in their mobile application for users in specific time frame (Harrison, 2012).
CHAPTER 3 : FEASIBILITY – This is being considered as another important section
of present business plan which is used for showing that the developed plan is basically
approachable or not. Here, a range of research methods are going to be used so that right
determinations could be made (Haven‐Tang and Jones, 2012). This process includes various
techniques of data collection and research techniques. In this section, discussion about secondary
and primary research is undertaken along with the techniques in order to gather data related to
the business opportunities.
CHAPTER 4 : STRATEGIC ANALYSIS AND BUSINESS MODEL – Under this
segment of business plan, a proper strategic analysis is going to take place which will be done
considering a business model that will show Revolut Ltd. actual performance. This will directly
aid in making right determinations as per the requirements. Main aim of present plan is to start
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offering a new service to its customers related to commission - free trading. With the help of this,
Revolut Ltd. Has also kept its focus on business expansion in most of countries of Europe and in
United States as well (Hess and Mai, 2015).
CHAPTER 5 : BUSINESS PLAN – This is being considered as the last segment of the
report, where proper execution of business objective (plan) will take place. Under this, various
determinations for the Fintech company named as Revolut Ltd. is going to show different range
of corporate strategies which the company will develop in specific time frame (Highsmith,
2013). Through this maximum benefits can easily be developed by the company where high
range of profits can be earned among different countries like United States, France, Germany and
many more.
CHAPTER 2: THE BUSINESS OPPORTUNITY
Most of investors were basically going through a range of problems where they had to
pay a piece of amount in order to make investment and at the time of withdrawal they also had to
give a small amount. On the other hand, most of Fintech organisations were just offering a range
of banking services only and people (users) were looking to invest the money which they have
kept in wallets (Hiles, 2012). This raised ample number of opportunities for companies that
could help them in reaching to new heights. This was one of the gap which was basically be
filled through offering customers with a range of problems and issues as well at the same time.
Revolut company's new approach where they are offering service to its customers where
investing process is basically free considering a trade online commission-free approach. This is
one of a crucial business opportunity for the company where it will offer elimination of barriers
linked with investing by offering commission-free online stock and ETF trading. The number of
available free trades increases based on a customer's Chase relationship, from 100 free trades
every year for Premier Plus Banking, to unlimited free trades for Sapphire Banking and Chase
Private Client (Jenkins, 2013).
Using trade online commission-free approach, Revolut Ltd. will directly start catching
the eyes of investors where they will start getting a good position in specific time frame and will
develop smarter decisions and this would aid them in earning high range of returns on
investments. The modification which has been made under the mobile application, where
existing user or a new client can open an account in three minutes and transfer funds between
their chase accounts in real-time. A Portfolio Builder tool assesses an investor’s risk tolerance,
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and helps them design and invest a diversified portfolio of stocks and ETFs (Jones and Penaluna,
2013). On the other hand, the new updates brought among mobile application has been
developed or designed for those who want help creating and implementing a long-term
investment strategy. Apart from this, modifications has also been made in gaining digital
experience for customers who work with advisors, providing access to Revolut research,
redesigned content and tools and enhanced mobile capabilities.
This basic opportunity that can be seen of developing this business plan is to gain ample
number of competitive advantages at both domestic and international level. Through this,
Revolut Ltd. may become much more helpful to its customers so that they could directly make
high range of money as well. This is done for both of the purposes like (rivals to competitors and
high return on investments for the clients) and this will directly help business company in being
thankful for banking and investing with them. Just after finding out the market within the gap
where Revolut Ltd. is going to offer commission - free trading services for the application users
of both U.S. and U.K. market (Kilelu, Klerkx and Leeuwis, 2013).
Mission: In present context, the mission of Revolut Ltd. is “To adopt commission - free
trading services in order to gain competitive advantages at United States business market.”
Vision: Vision of Revolut Ltd. is to become one of leading Fintech company in all over
the world.
Service: Revolut Ltd. is basically offering banking services including a pre-paid debit
card (MasterCard or VISA), currency exchange, cryptocurrency exchange and peer-to-peer
payments. A new service that this company has developed i.e. commission - free trading services
where there clients can easily invest capital (assets) in places where they can get heavy return on
investments.
Positioning: In present case where Revolut Ltd. is looking forward to expand their
business in United States. Thus, they are going to position themselves where targeted clients can
reach to the new service with just three touches in their mobile phone (Kuik and Verbruggen,
2012).
Scale: The target market of Revolut Ltd is really very huge as company is directly
targeting clients (investors that are having a Demat account (brokerage account)). Under this
case, around 1,90,00,000 Demat account holders are present in United States and U.K. is having
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approximately 1,80,00,000 Demat accounts that means Revolut Ltd. is basically targeting a big
scale.
Growth anticipation: Since most of banking service based Fintech companies that are
doing business at international level but did not offered services like investments and so on
(Lafferty and Eckerberg, 2013). Therefore, Revolut Ltd. Will be offering service like this, where
mobile users (clients) that are having brokerage account can easily invest their money without
paying anything to brokers. This can be considered as sure short idea that Revolut Ltd. will use
to earn great profit margins and it will also aid in attaining competitive advantages as well at
United States.
Business model: In present context, where business model canvas has been used which
may aid in identifying different factors like stakeholders, key resources, strengths, weaknesses
and others (Lee, Phaal and Lee, 2013). This basically aid in doing analysis and making
determinations as well through which maximum benefits could be gained by the company. Here,
Revolut Ltd. is going to expand business at international level, specifically in United States, in
order to gain competitive advantages as well, company will enter the U.S. Market with a new
approach in their mobile application where users can just not transfer but they can invest their
assets as well in free. For the same, a proper business model canvas has been developed by
researcher in order to become a business leader in Fintech sector. Here, a range of elements that
are being considered as factors that will help Revolut Ltd. in reaching to new heights.
CHAPTER 3: FEASIBILITY
3.1 Market Research Methodology
This is being considered as one of essential section of an investigation which could be
used to conduct a research or develop a business plan. Here, a vast majority of techniques fit into
different categories and these are : secondary research, surveys, focus groups, interviews,
observation and so on. These are the techniques which can be used by BOD of Revolut Ltd. in
order to draw favourable outcomes in specific time frame. There are range of elements that this
section will include are given beneath:
3.1.1 Defining the research problem
As Revolut Ltd. is only doing business in United Kingdom and in some other countries
where it is offering banking services with considering approximately 120 currencies. With
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growing digital exchange considerations, Fintech organisations are rapidly developing a range of
services for their users (Muscat, 2016).
(a) Problem formulation
The above discussed situation has raised raised competition among companies, where
Revolut Ltd. was lacking. The problem is to execute the business plan of Revolut Ltd.
effectively in order to offer customers with commission - free trading services. With the help of
this, Revolut Ltd. may effectively raise profit margins in much effective and efficient manner. It
also aid in expanding the business in United States.
(b) Aim of the current market research
To examine the benefits of adding commission - free trading in existing banking services
offered by Revolut Ltd. while expanding business in United States.
3.1.2 Design for the market research
In present context, there are a range of alternative styles which can be utilised for market
research and these are given beneath: Exploratory, Quantitative, Qualitative, Descriptive, Casual
investigations and so on. Under the case scenario of Revolut Ltd., the method which is being
used for conducting the overall investigation is Exploratory research that will specifically aid in
formulating or identifying the market within the gap. On the other hand, another method which is
being utilised i.e. market segmentation and accessibility as well of the market and this is going to
be identified right on time (Pearson, 2016).
3.1.3 Information types and sources that are required
With the help of article which was given by Natalie Campisi, who is a reporter have said
that, online trading continues to grow in popularity (Some pros and cons of online trading,
2016). More than 14 million households in the U.S. are signed up with an online trading service,
according to data from Statista, a statistics company. With online trading, or e-trading, traders
make all their decisions themselves. Such an approach to trading differs from using a
stockbroker, as the broker typically offers input and advice. For the same, a proper business plan
has been developed for, Revolut Ltd. where it will focus on a range of channels through which it
can gather information related to strategies that has been adopted by rivals in order to serve
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