Revolut gets French banking licence

British digital financial services group Revolut said Monday that it had obtained a full French banking licence, a step it said strengthens its position among retail lenders in Europe.

Revolut said the French bank will operate alongside its Lithuanian subsidiary as dual hubs within the European Union, under the supervision of local regulators and the European Central Bank.

Founded in 2015, Revolut has around 30 million customers in western Europe. The company initially focused on smartphone-based currency exchange and transfers and has since expanded its financial services.

Co-founder and chief executive Nik Storonsky said France had become a leading financial hub and was “the ideal platform to accelerate Revolut's next phase of growth”.

The company has said it plans to invest $1.2 billion in France and is set to open its western Europe headquarters in Paris next year.

Revolut secured a banking licence in its home market in March. A source close to a July secondary share sale to private investors said the company's value had risen to $115 billion.

Storonsky said in April that an initial public offering of Revolut shares was at least two years away. The fintech is targeting 100 million customers in 100 countries and is also seeking a US banking licence.

Revolut's rapid growth has drawn criticism in recent years over its ability to comply with financial regulations, particularly rules aimed at combating fraud and money laundering.