In a strategic move towards self-reliance, digital bank Revolut is expanding its team to manage secondary share sales internally. This decision marks a notable shift from the traditional reliance on Wall Street investment banks. The company is actively recruiting talent to boost its capability in this area.
Revolut’s move is indicative of a growing trend among fintech companies. Increasingly, these firms are choosing to reduce their dependence on traditional investment banking services. Instead, they are investing in internal teams to manage capital markets strategies. This transition not only provides them with greater control over their financial manoeuvres but also reduces costs associated with external banking services.
The decision to manage secondary share sales internally is a significant one for Revolut. Secondary share sales are a crucial part of a company’s financial strategy. They involve the sale of existing shares by one investor to another. Usually, such transactions are managed by large investment banks. However, Revolut is breaking away from this norm, choosing to handle these transactions via an in-house team.
Revolut and the trend towards internalisation
This move by Revolut is not an isolated event. In fact, it mirrors a wider trend within the fintech sector. More and more companies are beginning to establish internal teams to manage their capital markets activities. This includes everything from initial public offerings (IPOs) to secondary share sales and beyond.
By building an internal team, Revolut ensures that it has direct control over these activities. This approach reduces external dependencies and can also lead to significant cost savings. Investment banks often charge hefty fees for managing share sales. Therefore, by taking this process in-house, Revolut can avoid these fees altogether.
A key factor in this shift towards internalisation is the rapid advancement of technology. Today’s fintech firms have access to sophisticated tools and platforms that enable them to manage complex financial transactions in-house. Consequently, the need for external banking services is being steadily eroded.
In conclusion, Revolut’s decision to manage secondary share sales internally is a strategic move that reflects changing trends within the fintech industry. It underscores the company’s commitment to reducing external dependencies and retaining more control over its financial strategy.
