How to scale fast by finding low-competition markets

TL;DR

Referrals were Revolut's main growth driver, delivering the majority of new customers. The key is to focus on one strong growth lever and speed up onboarding so users can invite peers quickly. Then use cross selling to expand value after initial adoption, keeping messaging aligned with real use cases.

Transcript

you want to go in a market where you don't have competition so if you think about revolute against monzo right like the markets we grew the fastest wasn't the UK it was Ireland it was Romania Poland we went in a lot of markets where we just didn't have competition which allowed us to raise more money build better products hire more people there's a... Read More

Key Insights

• Market entry should target low-competition segments where the product is significantly better than the status quo.
• Referral loops depend on rapid activation, where the time from signup to first meaningful action is minimized.
• Onboarding optimization can dramatically raise activation rates, turning more signups into paying customers.
• Understanding and shaping user use cases helps align product messaging and adoption.
• Pricing and rewards for referrals must balance attractiveness with sustainable CAC and CPA.
• A multi-product strategy (multicurrency, crypto, stocks) increases wallet share and long-term value.
• Creative infrastructure was necessary to fund growth without large marketing budgets.
• Founders should avoid over optimizing a single product when a broader platform can drive more revenue.

Questions & Answers

Q: How can a company find markets with little competition to accelerate growth

To accelerate growth by targeting low-competition markets you should analyze regional differences where incumbents are weak or absent and tailor the product to local needs. Prioritize markets where your value proposition clearly outperforms the local status quo. This approach allows faster fundraising, better product fit, and quicker user adoption while minimizing competitive pressure.

Q: Why are referrals such a powerful growth engine for fintech

Referrals work well in fintech because trusted recommendations reduce perceived risk for new users and speed up the onboarding path. By enabling and incentivizing users to invite peers, you create a self-reinforcing loop where existing customers become advocates. The key is a fast and frictionless signup process that can convert referrals quickly.

Q: What is essential for a fast onboarding experience in a growth strategy

A fast onboarding experience requires a streamlined activation path where new users can complete essential actions quickly, such as making a payment or verifying identity. Reducing steps, removing friction points, and guiding users towards a concrete next action dramatically improves activation and sets the stage for referrals.

Q: How did Revolut optimize referrals without overloading users

Revolut optimized referrals by engineering the flow so that inviting friends happens naturally within the onboarding journey or early usage, rather than as a hard push. The aim was to make inviting peers a logical next step that aligns with the user’s immediate needs and incentives, not a disruptive prompt.

Q: What role did product diversification play in Revolut’s growth

Product diversification created additional value streams that increased wallet share. After initial adoption, users could access premium features, crypto, stocks, or business banking. This multi-product approach allowed the company to monetize existing users more effectively and sustain growth without continuously acquiring new customers at high cost.

Q: How should a founder think about referral incentives in growth

Referral incentives should reflect the cost of acquisition while remaining attractive to users. The incentives must be large enough to motivate sharing but balanced so the CPA remains reasonable relative to the expected customer lifetime value. A well-designed program can yield meaningful growth without inflating CAC.

Q: What mistakes do growth leaders often make when scaling

Common mistakes include over-optimizing a single feature or channel, neglecting onboarding friction, and failing to align messaging with real user use cases. Growth leaders should instead focus on a clear growth lever, ensure onboarding is fast, and continuously adapt messaging as the product and market evolve.

Q: When is it better to pursue cross selling versus new customer acquisition

Cross selling is advantageous once a solid base of paying customers exists, as it leverages existing trust and reduces marginal cost per additional product. It helps monetize the same user over time and strengthens retention, whereas new customer acquisition requires higher upfront investment and broader messaging.

Summary & Key Takeaways

• Revolut grew fastest in markets with little competition, not the UK, using selective market entry to accelerate fundraising and product development.

• The company found a single, strong growth mechanism and optimized onboarding to convert users quickly, enabling rapid peer referrals.

• Cross selling to add new products after onboarding amplified unit economics and sustained growth without chasing many separate channels.