Sizing Revolut's Addressable Market: Users and Revenue Estimation (TAM, SAM, SOM)

Estimate the size of the market for Revolut, the app-based financial services company that offers accounts, cards, currency exchange and other money services. Walk through how you define the market, the equation you use, the assumption behind each input, the arithmetic, and how you would check that your answer is reasonable. ```hint Size revenue per user, not just users Fix a geography and decide who could realistically use an app-based account, then build annual revenue per user from the ways Revolut actually earns money. Finish by comparing your result with a number you can observe independently. ``` ### Clarifying Questions - Should the market be measured in potential customers or in annual revenue, and for which geography: the UK, Europe, or every country where Revolut operates? - Which products are in scope: personal accounts and cards only, or also business accounts, trading and crypto, paid plans and lending? - Do you want the total market, the part Revolut's model can serve today, or the share it could realistically win within a few years? ### What a Strong Answer Covers - A clear definition of the market (geography, products, unit, and total vs serviceable vs obtainable) before any numbers - A written equation with every input labeled as an assumption, using round numbers - Revenue per user built from Revolut's actual revenue lines, such as card fees, currency exchange, subscriptions and interest on customer balances - Correct arithmetic and a sanity check against an independent reference point - Sensitivity to the least certain inputs, such as interest rates and willingness to move money away from a traditional bank ### Follow-up Questions - Which assumption moves your estimate the most, and how would you narrow its range with real data? - How would your estimate change if interest rates fell sharply? - How would you adapt the method to size a market outside Europe?