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Revolut is expanding its business in Europe, although obtaining additional banking licences isn’t necessary, according to Western Europe CEO Béatrice Cossa-Dumurgier.
The British neobank, which now boasts over 65 million customers worldwide, currently holds a full licence in Lithuania, which allows it to offer banking services across the European Economic Area.
When announcing a €1 billion investment in France this year, Revolut said that it would be applying for a French banking licence. Cossa-Dumurgier told Euronews that such a move would allow the neobank to get closer to customers through more tailored product offerings.
“Having a second licence in Europe is going to help us better localise our offer and ensure that we complement this very global model of ours,” she said.
“We’re in the process of getting this licence, but we are not specifically in a hurry, because we are already operating in these countries, with the support of the licence in Lithuania.”
While Cossa-Dumurgier stressed that the permits aren’t a priority, she also claimed that the “very demanding” approach taken by French regulators is “excellent” for the firm.
“Trust in banking is key. In order to build trust, you need to be excellent in compliance. So being exposed to very demanding regulators…allows us to strengthen our operations globally,” she said.
After a three-year wait, Revolut last year obtained its banking licence in the UK, but the permit remains in the “mobilisation” period. The hold-up means that Revolut isn’t yet able to offer certain products to British customers, particularly when it comes to lending.
Transforming into a primary bank for customers
“Revolut started as an e-money business and deliberately aimed to be the second bank and not the primary bank for clients,” said Cossa-Dumurgier.
“And what we observe is that more and more, we are becoming the primary bank for our customers because we are proposing products and services that simplify their life,” she added.
Revolut markets itself as an efficient, low-fee, digital alternative to traditional banks, notably allowing customers to do away with paperwork and hold multiple currencies in one place.
Integral to the brand is its pan-European identity, as it seeks to simplify transactions across borders.
“What we want to do in the coming years is support any pan-European initiatives…that would further harmonise regulation,” noted Cossa-Dumurgier.
“We believe regulation is good, because it strengthens standards… But what is not good is when there is no harmony between the various countries, because … it prevents players from competing in a single [unified] European market,” she said.
Revolut is one of numerous businesses calling for more unified financial rules across the eurozone, echoing calls from politicians such as former ECB President Mario Draghi.
According to Cossa-Dumurgier, such a move would allow Europe to more efficiently compete with other nations.
Will Revolut go public?
When asked whether Revolut is eyeing up an IPO (public share listing) in Europe or the US, Cossa-Dumurgier again stressed that the customer experience is the firm’s focus.
“I don’t believe an IPO is an end in itself. It’s just a way to get to another point. There is definitely no timeline at all today,” she said.
“And the key focus… for everyone, is not at all about that. It is just about building an operating model in Europe to make our growth sustainable and successful over time [and] to bring the best innovation to our customers.”
While an IPO may not be on the immediate horizon, Revolut is considering a dual listing in New York and London for its share sale, according to a recent report in The Times.
If such a deal were to take place, it would be the first time a company has simultaneously listed in New York and entered London’s flagship FTSE 100 index.
The Big Questionis a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today’s agenda.
Watch the video above to see the full discussion with Revolut’s Béatrice Cossa-Dumurgier.
Additional sources • Edited by Arno Aubert
