Why does Revolut force the use of IBAN ES?

One of the advantages that many clients find in certain fintechs is the freedom to choose IBAN, which allows diversifying risks and deciding which Central Bank you want to supervise your accounts. In a controversial decision, Revolut has announced to its users in Spain that they will not be able to continue using the Lithuanian IBAN as before and that they will have to switch to the Spanish IBAN.

Revolut is an English-based neobank, driven by Russian managers and offering accounts with Lithuanian IBANs. But on May 9, 2023, the BOE announced the registration of the entity in the Registry of Credit Institutions of the Bank of Spain. This means that they can start offering accounts with Spanish IBANs, which will be under the supervision of the Bank of Spain. Two and a half months later, Revolut has got down to business.

The entity has sent a message to its users in Spain advising them that they will have to change their account in the Spanish IBAN or close it. They are therefore not given the option of keeping the Lithuanian account. A few years ago, another reference entity, N26, also began to offer the Spanish IBAN but, in this case, they allowed users who wished to keep their German IBAN.

Revolut no, take it or leave it. Either you accept the Spanish IBAN or close the account. This can be a problem for many people, because IBAN diversity is a way to diversify risks in terms of savings. The measure does not mean, in a practical way, any tangible improvement for users because Revolut has confirmed that depositors’ funds will be guaranteed not by the guarantee fund of the Bank of Spain but by the Central Bank of Lithuania, which is where the parent bank is based. The only possible point in favor is avoiding IBAN discrimination, that is, that in Spain you cannot domicile payments with an IBAN from another country, something controversial because it contravenes SEPA regulations and can be denounced.

The advantages of the Bulgarian IBAN

For this reason, it is expected that some users will look for new options to transfer their savings to accounts with an IBAN that is not Spanish. In this sense, 11Onze offers IBAN of Bulgaria, mainly due to its solvency and because it allows normal operations in the SEPA area. From El Canut de 11Onze you can make instant transfers, manage various accounts of other entities, request debit cards and access all the services and content offered by La Plaça. From the purchase of gold to insurance, through information and training content. Everything can be done from El Canut.