Revolut lands fresh banking licence after wrestling with Europe friction

Revolut has secured a new full banking licence from the European Central Bank (ECB), following previous issues with European regulators. The $75bn fintech company announced on Monday that its European branch will expand its presence across France and other European markets, including Germany, Ireland, Italy, Portugal, and Spain. Revolut currently serves over 30m customers in Western Europe under its subsidiary, Revolut Bank S.A., based in France and Revolut Bank UAB in Lithuania.

Founding CEO Nik Storonsky stated that the new licence provides a solid foundation for building the next generation of banking. Paris was chosen as Revolut's Western European headquarters last year, following a significant €1bn investment and a commitment to create over 200 jobs in the country. The British fintech retains London as its global headquarters.

The new approval comes after Revolut faced a setback from the ECB last year, when it temporarily suspended its ability to launch new products across its European Economic Area markets. The European regulator ordered a third-party review of Revolut's product launch process, including its risk, compliance, and legal functions. Additionally, Revolut was prohibited from making acquisitions or accepting new customers outside the EEA.

Since then, Revolut has reportedly made several improvements to its internal product launch process, incorporating internal experts and bank governing bodies to address the ECB's concerns. The company responded to the news of the ECB intervention by stating that they maintain continuous and constructive dialogue with their regulators. Revolut received its initial European banking licence from the Bank of Lithuania in 2018, which it upgraded to a full European licence in 2021.