Revolut has secured a full Australian banking licence, clearing it to take deposits and lend directly to customers under its own bank.
The Australian Prudential Regulation Authority (APRA) granted Revolut Payments Australia an authorised deposit-taking institution (ADI) licence under the Banking Act 1959 on July 21, and separately licensed Revolut Australia NOHC as a non-operating holding company. The company will operate in the market as Revolut Bank Australia.
Revolut says it is the first global fintech to hold a full, unrestricted ADI licence, a claim independently reported by Capital Brief. It is also Revolut’s first bank in the Asia-Pacific region.
What the licence changes for customers
The licence lets Revolut accept deposits covered by the government’s Financial Claims Scheme, which guarantees eligible deposits up to A$250,000 per account holder per institution if a bank fails. Before the approval, Revolut operated under an Australian Financial Services Licence and held customer funds under safeguarding arrangements rather than as bank deposits.
Existing customers move to the licensed bank automatically. New sign-ups from July 21 are onboarded directly into Revolut Bank Australia.
Revolut is launching instant-access savings that pay interest daily, with retail rates reaching up to 5.05% p.a. on its highest plan tier. The headline rate on the basic personal saver is 3%, and business accounts pay up to 4.25%. Fee-free credit cards are also planned.
A $400 million bet on the local market
Revolut has committed to invest nearly A$400 million in Australia over the next five years, directed at product development, growth and local hiring. The company reports more than 75 million customers worldwide and more than one million Australian retail customers; Forbes Australia puts the local base at about 1.2 million, and values Revolut at US$75 billion.
Founder and chief executive Nik Storonsky said securing the licence in a tightly regulated market was “a testament to our business model and our team.”
How it lands against the Big Four
Australia’s retail banking market is dominated by four lenders: Commonwealth Bank, NAB, ANZ and Westpac. Revolut Bank Australia chief executive Matt Baxby said he views the company as the first true breakout consumer and small-business bank in the country.
Revolut enters a market where competition is already building. Macquarie has pushed into transaction and mortgage accounts, and Revolut joins a small group of tech-focused ADIs that includes Judo, Tyro and Up. Whether digital-first pricing pulls Australians away from incumbents that hold their mortgages and salary accounts is the open question.
What comes next
Revolut can now roll out deposit and lending products in stages, and as an ADI it must meet APRA’s minimum capital and liquidity requirements on an ongoing basis. Savings and credit products are live or rolling out from launch; credit cards and a wider lending range are expected to follow.
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