Revolut Shifts From Scale to Banking Depth

Revolut has secured a French banking licence, strengthening its European expansion strategy and allowing the British financial technology company to deepen its presence across key western European markets.

The licence was granted by France’s banking regulator, the ACPR, and the European Central Bank. Revolut already provides banking services across the European Union through its Lithuanian licence. However, direct regulation in France will allow the company to offer products designed for local customers, including loans and regulated savings accounts.

Paris will become Revolut’s western European headquarters as the company gradually transfers customers from its Lithuanian entity. French customers will move first, followed by users in Germany, Ireland, Italy, Portugal and Spain. The company has committed $1.1 billion to its French expansion and signed a ten-year lease for offices in Paris.

Revolut also plans to recruit more than 600 employees across western Europe, including 400 in France. Former Société Générale chief executive Frédéric Oudéa has been appointed chairman of its western European operations, adding established banking experience to the company’s regional leadership.

The licence represents an important step in Revolut’s effort to broaden its revenue beyond fees and cryptocurrency services. Increased lending could strengthen customer relationships and encourage more users to treat Revolut as their main bank. The company has more than 75 million customers worldwide but operates without physical branches.

Regulatory questions remain. Revolut declined to address reports that its French operation could face restrictions on new products, including mortgages. The company said it does not discuss its regulatory arrangements.

Revolut has also received a British banking licence and views its French approval as potentially helpful to securing one in the United States. Its reported $115 billion valuation would place it above several established European banks, underlining how rapidly digital challengers are reshaping the competitive landscape.