British financial technology giant Revolut is set to launch a wealth management app to compete with Robinhood and eToro for retail investors.

British fintech giant Revolut plans to spin off its 8.5 billion (about $9.5 billion) wealth management business into a separate app in an attempt to compete with companies like Robinhood (HOOD.US) and eToro for a larger share of the retail market. The app, called Revolut Invest, will initially offer nearly 5000 assets, including U.S. and European stocks, exchange-traded funds (ETFs), commodities, bonds, and new products like contracts for difference. Revolut stated that stock and bond investments will incur a fixed fee of 0.25% or 1, while fees for contracts for difference may vary. Rolandas Juteika, Revolut's Head of Wealth and Trading, stated that the app is currently being tested in Greece, Denmark, and the Czech Republic and will be launched in other eurozone countries by the end of the year. He also mentioned plans to double the number of tradable assets within the same timeframe. This move by Revolut is part of CEO Nik Storonsky's ambition to establish what he calls a "truly global bank," offering all financial services and competing with industry giants like JPMorgan Chase (JPM.US) and Barclays (BCS.US). Amid a global interest rate cut trend, Revolut hopes to attract a large number of retail investors returning to the market through this new trading platform. The company is entering an increasingly crowded field, with companies like Robinhood, eToro, Trading 212 Group, and Freetrade already making a mark and newer entrants facing challenges. However, Revolut's scale may help it solidify its position in this sector. Founded in 2015, Revolut currently boasts a valuation of $45 billion after its recent second stock offering, more than double the market value 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 new standalone app, they will be able to target new customers who have not yet used their banking services, opening up to a wider retail investor base. The company also offers an advanced subscription service called Trading Pro, which provides lower commissions, higher trade limits, and analysis features. Data shows that about 5% of Revolut users are considered active users who trade more than once a week, with around 20,000 users subscribed to Trading Pro. According to Revolut's latest annual report, as of the end of June, the company has around 45 million customers, with over 3 million users already using its investment services. Rolandas Juteika stated that assets under Revolut's wealth management products have nearly doubled from 30 billion at the end of 2023 to 85 billion. Over time, Revolut plans to expand its Revolut Invest app into other jurisdictions, having already obtained relevant licenses in the UK, US, Singapore, and Australia.