Societe Generale Rethinks Digital Strategy as Revolut Targets France

Facing a challenge from Revolut, Societe Generale (SocGen) is reportedly rethinking its strategy for BoursoBank.

The French bank is due to hold a board meeting this month to discuss its options for the online lender, Bloomberg News reported Tuesday (Sept. 2), citing sources familiar with the matter.

The report noted that while BoursoBank hit its target of 8 million customers, up from 7.2 million in March, a year ahead of schedule in 2025, Revolut now wants to have 10 million French users by 2026. The U.K.-based FinTech is also opening new regional headquarters in Paris and plans to invest $1.2 billion in the country, the report added.

Sources tell Bloomberg that SocGen CEO Slawomir Krupa is weighing a slow down for an earlier plan to focus on cutting client acquisition costs once the 8 million target was reached in light of Revolut’s efforts.

This is happening as Revolut is enjoying a wave of optimism from investors over the FinTech world in general. The company is reportedly undertaking a share sale in the hopes of capturing a valuation of $75 billion. SocGen’s market capitalization, the Bloomberg report added, is €41 billion, or $47.7 billion.

As covered here recently, Revolut’s expansion plans also include bolstering its banking presence in the U.S. The company is said to be exploring the acquisition of a nationally chartered American bank, which would give Revolut a pathway to offer lending in all 50 states. However, the firm could also apply for a U.S. banking license of its own.

In other digital banking news, recent PYMNTS Intelligence research examined how payment hubs are becoming critical for traditional financial institutions trying to clear the high bar set by FinTechs and digital-first challengers. The study found that 60% of banks had implemented payment hubs or are in the process of doing so.

“For today’s banking customers, speedy, secure and frictionless payment experiences are no longer optional; they’re fundamental to their choice of bank,” PYMNTS wrote.

“However, traditional banks often struggle with a complex web of siloed legacy systems that handle various payment rails, such as real-time networks, ACH, wire transfers and debit. Payment hubs offer a solution by acting as unified platforms that consolidate all payment processing, providing a fast, consistent and straightforward experience for customers regardless of the underlying payment rail.”