Revolut applies for Swiss banking licence in major expansion

Fintech giant Revolut on Wednesday applied for a Swiss banking licence and pledged to invest more than CHF 150 million in the country over the next five years as it seeks to establish an independent banking operation there. The application was submitted to the Swiss Financial Market Supervisory Authority (FINMA) on Wednesday and is currently under review, with the outcome still pending. Revolut said obtaining the licence would allow it to offer a fuller range of banking services to its more than 1.3 million Swiss customers, including Swiss IBANs, salary accounts, eBill and merchant acquiring. Customers would also gain access to deposit protection under Swiss standards, while additional products such as Pillar 3a and TWINT are being considered for the future. Revolut currently serves Swiss customers through Revolut Bank UAB, which is licensed in Lithuania and has a representative office in Switzerland but does not hold a Swiss banking licence. The company said a Swiss licence would therefore represent the next step in developing a more locally focused banking operation and would allow it to combine its technology platform with Switzerland’s regulatory framework. “Today marks a pivotal moment for Revolut’s European strategy,” Revolut Chief Commercial Officer David Tirado said. “By applying for a Swiss banking licence, we are taking an important step towards becoming a more deeply rooted part of one of the world’s most important and advanced financial markets,” he added. “Together with our existing banking licences and regulatory infrastructure across Europe, this would further strengthen our compliance, governance and regulatory framework,” Tirado continued. “It would give us the right structure to be closer to our customers, regulators and talent across our key European markets, while continuing to grow responsibly,” he stated. Revolut said the planned Swiss banking entity would allow greater localisation of its products, including Swiss IBANs, salary accounts, eBill, merchant acquiring and access to the Swiss deposit guarantee scheme. Further products, including Pillar 3a and TWINT, are also under consideration, the company stated. “Revolut is already Switzerland’s leading fintech,” General Manager for Switzerland Julian Biegmann said. “With our own banking licence, we would become a true Swiss bank, able to offer our more than 1.3 million customers our leading Revolut banking product with a Swiss finish,” he added. “Clients would be able to receive their salaries to their Revolut account and manage all their finances, from spending to investing and beyond, with the product experience they already know and trust from Revolut,” Biegmann explained. The company said its CHF 150 million-plus investment over the next five years would support the development of new products and the creation of local jobs. Revolut also plans to make appointments to its executive board and senior leadership team as it develops what it described as an independent, locally anchored Swiss banking structure. The company said the planned appointments would further strengthen the development of the Swiss operation over the long term. If FINMA grants the licence, existing customers would be transferred to the Swiss banking entity through a process designed to be straightforward while meeting Swiss regulatory requirements. Revolut said the customer experience would remain unchanged, with local IBANs available from the outset and additional Swiss products and services introduced subsequently. The move comes after Revolut secured another significant regulatory milestone in August. On August 10, the fintech announced that its subsidiary Revolut Bank S.A. had been granted a full banking licence following a joint assessment by the European Central Bank (ECB) and France’s Autorité de Contrôle Prudentiel et de Résolution, the country’s prudential banking regulator. The decision was formally adopted by the ECB Governing Council following the regulatory review, in a move Revolut described at the time as a major milestone as it expanded its position in Europe’s retail banking market. Revolut now serves more than 80 million customers worldwide, according to the company. The Swiss application forms part of its broader effort to develop locally regulated banking operations while continuing to expand its presence across European financial markets.