Revolut French banking licence creates a second EU operating hub
Revolut Bank S.A. has received a French licence, starting a phased move from its Lithuanian EU hub amid prior regulatory scrutiny.
By Ingrid Halvorsen · Venture Capital Reporter
· 3 min read
Revolut Bank S.A. received a full French banking licence on August 10, giving the London-headquartered fintech a locally regulated base for its Revolut French banking licence rollout. The authorisation does not represent Revolut’s first EU banking approval, but it creates a second operating hub alongside its Lithuanian bank as the company moves customers and adds products market by market.
Revolut said the decision followed a joint assessment by France’s Autorité de Contrôle Prudentiel et de Résolution and the European Central Bank, and was formally adopted by the ECB Governing Council. The licence applies to Revolut Bank S.A., its French unit.
The company said France will be first to use the entity. Germany, Ireland, Italy, Portugal and Spain are scheduled to follow in later phases. Revolut Bank UAB in Lithuania will continue to cover the remainder of the European Economic Area.
What does Revolut’s French banking licence change?
Revolut could already offer banking services across the EU by passporting the Lithuanian banking licence it obtained in 2018, Reuters reported. A French licence puts a bank under French supervision as well as ECB oversight, and gives Revolut a local vehicle through which to tailor regulated services for that market.
Reporting by Reuters and the Financial Times said the structure is intended to support services such as loans, mortgages and regulated savings products. Neither report establishes that those products are immediately available to French customers. Revolut describes the transition as progressive.
For the company, the arrangement is a way to divide an expanding European operation between two regulated entities. Revolut says both hubs will be supervised by their respective local authorities and the ECB. It has said it serves about 30 million customers in Western Europe and more than 75 million globally, figures that have not been independently verified in the materials reviewed.
Expansion plan meets existing regulatory scrutiny
The French approval arrives after tensions with European supervisors. The Financial Times reported that the ECB imposed limits last year on Revolut’s product releases after finding deficiencies in its processes, including risk controls. Sifted similarly reported that Revolut was unable to launch new EEA products for a period while it addressed issues in its product-approval process.
Reuters reported that Revolut declined to comment on a Bloomberg report that the French hub would probably face restrictions on new products, including mortgages, following measures affecting its Lithuanian entity. The company said only that it did not comment on its regulatory arrangements.
Revolut has committed more than €1 billion to Western Europe, according to its announcement, and says it is hiring more than 600 people across the region. Reuters reported that 400 of those roles are planned for France. The company has also confirmed a Paris headquarters planned to open in 2027.
The local licence gives Revolut a clearer French regulatory footing as it seeks to widen its banking range. Its ability to convert that structure into new lending and savings products will remain subject to the phased rollout and continuing supervisory requirements.
This story draws on original reporting from Sifted.
