Key facts
- Revolut has been granted a new full banking license by the European Central Bank.
- The license allows Revolut to expand its services across France and other European markets.
- The company faced previous restrictions from the ECB regarding new product launches.
- Revolut has implemented improvements to its internal product launch processes.
Revolut has secured a new full banking license from the European Central Bank, signaling a significant step forward after navigating previous regulatory friction. The approval, granted by French regulators, will enable the fintech giant to accelerate its expansion across the continent.
The company plans to begin serving customers in France, with subsequent rollouts planned for Germany, Ireland, Italy, Portugal, and Spain. Revolut currently operates in Europe through its French-based unit, Revolut Bank S.A., and its Lithuanian entity, Revolut Bank UAB, serving over 30 million customers across Western Europe.
Revolut's founder, Nik Storonsky, stated that the new license provides a foundation for building the next generation of banking, highlighting France's position as a leading financial hub. The company had previously established Paris as its Western European headquarters last year, accompanied by a substantial investment and job creation pledge.
This development follows a period where Revolut faced restrictions from the European Central Bank, including a temporary suspension of its permission to launch new products across the European Economic Area. The ECB had mandated improvements to Revolut's approval processes for new launches in Europe, requiring a third-party review of its risk, compliance, and legal functions. The bank was also temporarily blocked from making acquisitions or accepting new customers outside of Europe.
Revolut has reportedly made significant improvements to its internal product launch processes over the past year, enhancing review procedures with internal experts and governing bodies. The digital bank initially obtained its European specialized banking license from the Bank of Lithuania in 2018, later upgrading to a full European banking license in 2021.