Revolut has been granted a new full-fat banking licence with approval from the European Central Bank following previous friction with the prudential regulator. The $75bn fintech giant revealed on Monday its European arm will accelerate its continental push under a new permit given to it by French regulators.
The group said it will begin serving customers across France, with other European markets including Germany, Ireland, Italy, Portugal and Spain expected to follow in subsequent phases.
Revolut operates in Europe under Revolut Bank S.A, the unit granted the licence by the French watchdog, and Revolut Bank UAB, which is based in Lithuania. Across Western Europe it serves over 30m customers.
Nik Storonsky, Revolut’s founder, said: “This licence gives us the foundation to build the next generation of banking… France has become a leading financial hub, supported by a dynamic financial ecosystem and a robust regulatory framework.”
The British fintech named Paris as its Western European headquarters last year, which came alongside a major €1bn investment and a pledge to create over 200 jobs in the country. London remains the group’s global base.
Regulatory Challenge
The new approval follows Revolut facing a regulator slap-down from the European Central Bank last year after restrictions were placed on its operations in the continent.
Europe’s most valuable fintech company had its permission to release new products across the 27 countries covered in the European Economic Area temporarily suspended last summer following deficiencies.
It was also blocked from making acquisitions or accepting new customers beyond the continent as part of the restrictions. It’s understood that Revolut Bank UAB – the official title of its European entity – has conducted a number of improvements to its internal product launch process over the last year, including beefing up the review process with internal experts and bank governing bodies.
Responding to the news of the ECB intervention, which was first reported by the Financial Times, a spokesperson for Revolut said: “We are in continuous and constructive dialogue with our regulators, including the European Central Bank, as part of our normal course of operations as a fully licensed bank.”
The digital bank secured its European specialised banking licence from the Bank of Lithuania in 2018. It later upgraded to a full European banking licence in 2021.
