Revolut wins French banking license for Western Europe push

Revolut secured a full French banking license on Monday following joint approval from France's Prudential Supervision and Resolution Authority (ACPR) and the European Central Bank, giving the British fintech a second standalone banking license within the eurozone.bloomberg+1

The ECB's Governing Council formally adopted the decision after a joint assessment with the ACPR, allowing Revolut Bank S.A. to begin serving customers locally in France before expanding to Germany, Ireland, Italy, Portugal, and Spain in subsequent phases.cityam+1

A Dual-Hub Model for Europe

The license creates what Revolut describes as a "dual-hub model" for its European operations. The new French entity will gradually take on customers in Western Europe's largest markets, while Revolut Bank UAB in Lithuania will continue serving the rest of the European Economic Area, primarily Central and Eastern Europe. Both entities answer to the ECB and their respective national regulators.trendingtopics

Revolut founder Nik Storonsky called the license "the foundation to build the next generation of banking," adding that France "has become a leading financial hub, supported by a dynamic financial ecosystem and a robust regulatory framework."cityam

Overcoming Regulatory Friction

The approval comes after a turbulent period with European regulators. The ECB restricted Revolut's Lithuanian entity in mid-2025, temporarily suspending its ability to launch new products across the European Economic Area after finding weaknesses in its approval processes, as first reported by the Financial Times. The company was also blocked from making acquisitions or onboarding customers outside Europe during that period.financemagnates+1

Revolut has since conducted improvements to its internal product launch process, including strengthening review procedures with internal experts and governing bodies. Monday's announcement did not clarify whether any of those restrictions have been lifted.cityam+1

Investment and IPO Ambitions

The license is part of a broader commitment of more than €1 billion across Western Europe, with plans to hire over 600 staff in the region and open a Paris headquarters in 2027. Frédéric Oudéa, former Société Générale chief, chairs the French entity's supervisory board.trendingtopics+1

Revolut, currently valued at around $115 billion in a secondary share sale, serves more than 75 million customers globally, with roughly 30 million in Western Europe. The company has said it will not list publicly before 2028.financemagnates+2