Revolut has received approval to operate as a bank in Australia, giving the UK-based fintech a broader platform to compete for customers in one of the country’s most concentrated financial markets.
The Australian Prudential Regulation Authority has granted Revolut an Authorised Deposit-taking Institution licence. The approval allows the company to accept deposits and expand into products such as savings accounts, loans and credit cards. Until now, its Australian business has largely focused on services including foreign exchange and trading.
The licence marks a significant shift in Revolut’s local ambitions. Rather than operating only as a financial app, the company can now build a wider banking relationship with Australian customers and compete more directly with Commonwealth Bank, NAB, ANZ and Westpac.
Revolut has operated in Australia since 2020 and has built a local customer base of 1.2 million people. The company now plans to invest nearly $400 million over the next five years as it expands its presence, with the money directed towards local hiring and product development.
Savings and credit products move to the centre
A banking licence gives Revolut more room to compete on everyday financial products rather than relying mainly on travel-related and international money services.
For new customers, the company is offering a 3 per cent interest rate on its basic personal savings account. That rate will form part of Revolut’s early attempt to attract deposits and encourage users to treat the app as a primary banking service rather than a secondary account.
The expansion arrives as competition in Australian retail banking is already intensifying. Macquarie Bank has been increasing its presence in transaction accounts and mortgages, adding pressure to a market long dominated by the four largest banks.
Revolut’s entry introduces a different kind of competitor. Its business was built around a mobile-first platform, beginning with multicurrency cards aimed at travellers and expatriates before expanding into a broader range of financial services.
The company was founded in 2015 and was most recently valued at US$75 billion, equivalent to about A$104 billion. That scale gives Revolut the financial backing to pursue a long-term Australian expansion rather than a limited product launch.
Revolut calls Australia a long-term priority
Matt Baxby, chief executive of Revolut Bank Australia, described the banking approval as a defining point for the company’s local operations.
“Becoming a bank in Australia marks a defining moment in our journey, achieved through a relentless focus on delivering a better financial experience,” Baxby said.
He added that the licence would allow Revolut to introduce a broader group of products, including savings and credit, alongside the services already used by its Australian customers.
Revolut founder and chief executive Nik Storonsky said launching an Australian bank had been a long-term strategic priority and formed part of the company’s ambition to build a global banking business.
The real test begins after the licence
Regulatory approval gives Revolut the ability to compete, but winning a meaningful share of Australia’s banking market will depend on customer trust, product pricing and the strength of its local services.
The company already has a sizeable base of Australian users, but converting those customers into depositors, borrowers and primary account holders will be the more important measure of its progress.
Its planned investment, wider product range and digital-first model give Revolut a credible route into the market. The next phase will show whether that combination is strong enough to persuade Australians to move more of their financial lives away from the established banks.
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