Revolut, the global fintech with more than 55 million customers, said on Monday it is planning to file for a banking licence in France as it aims to make Paris its western European headquarters.
The group’s Irish operation, with more than 3 million customers, will eventually move from falling under Revolut’s existing euro zone base in Lithuania to France.
It will be joined the group’s businesses across Spain, Germany, Italy and branches that are scheduled to open in the coming months in Europe.
Lithuania will continue to serve other markets in the single currency region and the banking unit there will continue to be led by Irishman Joe Heneghan.
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Planning around the transfers, subject to French regulators granting the licence, will not have any impact on Revolut’s product rollout in existing markets, including the mortgage business it on track to launch in Ireland in the second half of this year.
[ Revolut to offer mortgages in Ireland in autumnOpens in new window ]
“France is Revolut’s largest market with 5 million customers and fastest-growing EU market, offering significant opportunities for expansion and innovation,” said Pierre Décoté, group chief risk and compliance officer.
“Paris is a natural fit as a gateway to accelerate Revolut’s growth trajectory in Europe and beyond, thanks to its dynamic banking ecosystem, strong regulatory framework, and rising prominence as a financial hub.”
The move to a dual-HQ model in the euro zone is seen a way of spreading the load as Revolut targets a doubling of its existing European customer base from 40 million to 80 million.
Revolut received its second banking licence in Mexico last month and is hoping to secure full authorisation in the UK – its main market, with more than 10 million customers – this year.
UK regulators gave Revolut a restricted licence, following a three-year wait, last July, after the group managed to file its first annual report in years without needing a deadline extension.
Revolut’s net profit more than doubled last year to £790 million (€922 million), driven by card fees and interest earned on surplus deposits placed with central banks, as the London-based fintech prepares to boost its lending by launching mortgages this year.
Group revenues rose by 72 per cent to £3.1 billion. The biggest contributor was £790 million of net interest income, which rose 58 per cent, as Revolut placed more of its growing excess deposits with central banks, including the European Central Bank, and “reputable financial institutions”.
