Revolut Expands Operations in Europe Without Extra Banking License
Revolut is enhancing its presence in Europe, and according to Western Europe CEO Béatrice Cossa-Demoulger, there’s no need for an additional banking license. The British neobank, which boasts over 65 million customers globally, is fully licensed in Lithuania, enabling it to provide banking services throughout the European Economic Area.
While announcing a €1 billion investment in France this year, Revolut revealed plans to apply for a banking license there. Cossa-Demoulger remarked that this would help the neobank tailor its products more closely to customer needs. “Securing a second license in Europe will allow us to better localize our services and enhance our global business model,” she mentioned.
She also pointed out that although they are in the process of obtaining the French license, there’s no urgent rush since they are already operating effectively in these areas under the Lithuanian license. Cossa-Demoulger emphasized that permits aren’t a priority for them, but she appreciated the rigorous oversight from French regulators, seeing it as beneficial for building customer trust.
After a three-year wait, Revolut obtained a banking license in the UK last year, but it’s currently in a “mobilization” phase. This delay means they cannot yet offer certain products to customers in the UK, particularly in the lending sector.
Transitioning to Primary Bank Status
Cossa-Demoulger stated that while Revolut initially positioned itself as a secondary banking option, it’s increasingly becoming the primary bank for many users. “We’re seeing that as we provide more products and services, we’re simplifying our customers’ lives,” she added.
Revolut promotes itself as a streamlined digital alternative to conventional banks, allowing users to manage multiple currencies without excessive bureaucracy. Central to its identity is a pan-European approach aimed at simplifying cross-border transactions.
Cossa-Demoulger expressed a desire for greater regulatory harmony across Europe. “Regulations boost standards, which is good, but it’s problematic when rules vary between countries. This inconsistency hinders competition in a unified European market,” she explained. Revolut joins a chorus of companies advocating for more uniform financial regulations across the eurozone, a sentiment echoed by politicians like former ECB President Mario Draghi.
Cossa-Demoulger claimed that such uniformity would help Europe compete more effectively on a global scale.
IPO Considerations for Revolut
When asked about a potential IPO (initial public offering) in Europe or the US, Cossa-Demoulger reiterated that their primary focus is on enhancing customer experience. “An IPO isn’t an end goal; it’s a means to achieve further growth. Right now, there’s no set timeline,” she noted.
She emphasized the importance of creating a sustainable operating model in Europe that supports long-term growth and innovation for customers. A recent report suggested that while an IPO may not be imminent, Revolut is contemplating a dual listing in New York and London, which could mark a historic first for any company.
