By Elizabeth Howcroft and Elisa Martinuzzi PARIS, April 22 (Reuters) - Revolut hopes to secure licences in France and the United States this year, its CEO for Western Europe said, which are key
Revolut aims to secure French licence in global push, Western Europe CEO says
Revolut's Expansion Strategy and Regulatory Efforts
By Elizabeth Howcroft and Elisa Martinuzzi
Key Markets and Licensing Goals
PARIS, April 23 (Reuters) - Revolut hopes to secure licences in France and the United States this year, its CEO for Western Europe said, which are key markets for accelerating the bank's growth as it seeks to compete with established lenders.
Benefits of French Regulation
Being regulated in France would allow Revolut to offer services tailored to local customers including loans, Paris-based Béatrice Cossa-Dumurgier told Reuters.
Investment and Local Presence
Revolut has pledged to spend $1.1 billion on expanding in France, and recently signed a 10-year office lease in the historic Bourse neighbourhood of the French capital.
Product Expansion and Market Position
The London-based company, whose profit has previously been driven by fee income and crypto, is looking to increase its lending and other products after gaining backing by British regulators in March to become a fully fledged UK bank.
Local Product Offerings
"If we want to definitely become the primary bank for all of our customers, we need to expand the product offering and have these local products that meet these types of needs," Cossa-Dumurgier said, referring to mortgages and regulated savings products, such as France's Livret A.
Customer Growth in Western Europe
Western Europe accounts for around a third of the customers currently signing up to Revolut, Cossa-Dumurgier said, with growth stemming from commission income not lending.
Regulatory Landscape and International Ambitions
Although Revolut can offer banking services to clients in the European Union by "passporting" its Lithuanian licence, being regulated in France, Germany or Britain helps in obtaining a U.S. licence, its CEO Nik Storonsky has said.
U.S. Bank Charter Prospects
A U.S. bank charter - which Storonsky told Bloomberg this week it aimed to get in four months' time - would also allow Revolut to substantially increase its customer numbers.
Status of French Licence Discussions
Cossa-Dumurgier said that discussions with France's banking regulator, ACPR, about the licence were "advanced".
"Hopefully, yes. But we don't know and I don't want to push," she said when asked if it was possible for 2026.
Comparison with Other Regulatory Environments
Unlike New Zealand and Australia, regulators in France do not link their licence decision to the UK process, she added.
Company Background and Market Valuation
Revolut, which was founded in Britain in 2015, does not have any physical branches and is the largest of a number of so-called "fintechs" launched in the 2010s with a $75 billion valuation tag in a share sale last year.
Comparison with Established Banks
That placed Revolut on par or ahead of some of the bigger banks in Europe in terms of value. Societe Generale, France's second-biggest listed lender, has a market value of 54 billion euros ($63.3 billion).
Regulatory Challenges and Recent Issues
Revolut's rapid expansion has also involved run-ins with regulators. Italy fined the bank $13 million earlier in April, saying it made misleading statements about its investment services. Revolut said it disagreed and planned to appeal.
($1 = 0.8529 euros)
(Reporting by Elizabeth Howcroft; Editing by Alexander Smith)
