Will Revolut and Other Trading Sites Get Involved in the New Investment Scheme? We're Not so Sure.

Why It Matters

Fintechs’ reluctance to assume tax responsibilities could cede a multi‑billion‑euro investment opportunity to banks, reshaping the competitive landscape for retail investors in Ireland.

Key Takeaways

• Fintech platforms reluctant to handle complex tax reporting obligations.
• Revolut's Irish dominance may not translate into scheme participation.
• Banks and insurers likely to dominate the new investment market.
• Adoption expected to be gradual, not a rapid shift from banks.
• Higher fees may be necessary to cover monthly tax calculations.

Summary

The video examines whether fintech firms such as Revolut, eToro and Trading212 will join Ireland’s newly announced €170 billion investment scheme. The discussion centers on the tax‑reporting burden these platforms would inherit and how it clashes with their low‑cost, user‑friendly business models.

Speakers note that fintechs typically avoid tax administration, preferring to keep fees minimal. Managing monthly contributions and filing returns for thousands of small investors would force a fundamental shift in pricing, potentially eroding the competitive advantage that made them popular. Without a massive influx of capital, the incentive to overhaul their infrastructure appears weak.

A key quote underscores the sentiment: “They don’t like doing any tax… I imagine they’ll be dominated by the banks and insurance companies.” This reflects confidence that traditional financial institutions, already equipped for compliance, will capture the bulk of the scheme’s flow.

The implication is clear: banks and insurers are poised to lead the rollout, while fintechs may miss out or enter later at higher cost. Investors should anticipate limited fintech options initially and monitor fee structures as the market evolves.

Original Description

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