UK challenger bank Revolut is overhauling its approach to managing its legal panel by deferring to short-term performance metrics rather than traditional partner relationships.
Announcing the change on LinkedIn, Revolut chief legal officer Tom Hambrett said the bank is replacing its static panel with ‘Revolut Partners’, a “dynamic, performance-based ecosystem assessed against metrics that actually matter and competitive best in class rates, and of course how they engage with our products”.
He said: “The traditional law firm panel became the default because everyone was doing it. I’ll admit – when I first adopted it, I didn’t stop to ask whether it was actually right for us. It isn’t. So we’re changing it.”
Hambrett said that no partner’s position in the bank’s panel lineup is guaranteed, firms will be reviewed quarterly and it will make changes if external counsel fail to perform.
He said: “We’re building a pool of firms ready to step up the moment a first-choice partner falls short. Underperformance means: poor client management, unmanaged scope creep, weak billing practices, a lack of responsiveness, or direct feedback from our lawyers that advice quality isn’t where it needs to be.”
Revolut is also building in-house AI tools to help its lawyers run RFPs, pre-select firms for specific instructions and scrutinise advice and invoices.
“Firms can no longer solely rely on soft relationship touch points to keep their place in the squad,” Hambrett added. “Relationships still matter. But performance wins you minutes on the pitch. The firms that make our shortlist will be the ones that consistently deliver the right outcomes, at the right pace, with the right commercial discipline.”
Responses to the plan on LinkedIn were mixed. While many commenters welcomed Revolut’s new approach, some were more sceptical about whether it will improve outcomes.
Responding to Hambrett on LinkedIn, Richard Oliphant, an independent regulatory and strategic consultant, said the real value external advisers bring is their nuanced understanding of a client’s business, something that is only attainable through “close and enduring collaboration”.
He said: “This is not a game of 5D chess. If Revolut wants better output from its panel, then you’d be better off working more collaboratively with a designated firm and ensure that the talent at that firm is assigned to your account for the long term. The approach you are advocating will have the opposite effect – firms won’t trust you or see any hope of a durable collaboration if their status on your panel is as fragile as a Middle East peace accord.”
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