Explainer: What Revolut's new Irish IBANs mean and what customers can expect
Holding an Irish IBAN will make it easier to use Revolut as a primary account where you can get your salary paid directly into your account, make payments via direct debit and pay bills more easily.
Global banking app, Revolut has announced significant changes affecting it's two 2m Irish customers, which in the coming months will see all users receive a new IBAN.
The changes come as the company moves to set up an Irish branch of its European business, Revolut UAB, which all customers will now be migrated to.
The move has been hailed by consumer finance experts, with many highlighting how it will add something new to the Irish banking market and make a Revolut account more accessible to Irish customers.
With that said, here is everything you need to know about these new changes.
Revolut has announced that all customers in Ireland will be issued with new Irish IBANs. Revolut will replace these old IBANs in the next two months, with customers being notified when their IBAN has been migrated.
An international bank account number, or IBAN, is an international system which identifies bank accounts across countries. Every IBAN is unique and no two are the same. The number identifies the owner of the bank account and the country in which it is registered.
An IBAN is used to transfer payment into a bank account. Anyone who sends money into your bank account, whether it be an employer, a friend or family member can use your unique IBAN to do so. Money cannot be withdrawn from a bank account using the IBAN.
Yes, but until now, the IBANs were registered as Lithuanian, as Revolut is headquartered in Lithuania's capital, Vilnius.
Giving customers in Ireland Irish IBANs will make Revolut accounts better suited as a primary account and reduce IBAN discrimination.
IBAN discrimination is where an employer or company, for example a phone company, refuses to accept an IBAN that is not registered in the country that you are in.
Refusing an IBAN is is not permitted under the Single European Payments Area (Sepa).
While it is illegal, Darragh Cassidy, head of communications at Bonkers.ie pointed out that there has been multiple reported incidents of customers "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."
The migration from Lithuanian IBANs to Irish IBANs moves Revolut closer to a full banking experience. Holding an Irish IBAN will make it easier to use Revolut as a primary account where you can get your salary paid directly into your account, make payments via direct debit and pay bills more easily.
Additionally, Revolut brings new competition into the Irish banking market following the departure of both Ulster Bank and KBC.
With just three major players left, AIB, Bank of Ireland, and Permanent TSB, Revolut's move to issue Irish IBANS offers customers more choice and dilutes a very concentrated banking market.
As Mr Cassidy explains, the move will "help increase competition in the banking sector because a Revolut account will now be a viable alternative to AIB, BOI and PTSB for day-to-day banking for many.
"With the upcoming exits of Ulster Bank and KBC, increased competition in the Irish banking sector is more important than ever and today’s news will hopefully help increase that."
While the move will bring numerous benefits to Irish customers, a Revolut account is not perfect, says Mr Cassidy, noting that there is no overdraft and it is not suitable for those with a preference for cash.
Additionally, Mr Cassidy concluded: "There are still issues with people getting wrongly frozen out of their accounts (for suspected fraud or money laundering) and then having trouble contacting someone to get the account unlocked."
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