Revolut secures Australian banking licence

Revolut has secured a full Authorised Deposit-taking Institution licence in Australia, giving the fintech its first licensed banking entity in the Asia-Pacific region and significantly expanding the products it can offer locally.

Revolut secures Australian banking licence

The approval from the Australian Prudential Regulation Authority allows the company to launch Revolut Bank Australia and move beyond its existing payments and money-management services into more traditional banking products, including savings and credit.

Revolut already serves more than one million retail customers and several thousand businesses in Australia. Existing users will be transferred automatically to the new banking entity, while new customers will be onboarded directly.

The licence also brings Revolut customers within Australia’s Financial Claims Scheme, which protects eligible deposits of up to AUD$250,000 per account holder.

AUD$400 Million Investment Planned

Revolut has committed to investing almost AUD$400 million in Australia over the next five years, covering product development, customer acquisition and expansion of its local workforce.

The investment reflects the strategic importance of Australia to the company’s international ambitions. The market combines high levels of digital banking adoption with a concentrated and tightly regulated financial services sector dominated by a small number of large institutions.

For Revolut, becoming a licensed bank creates opportunities to deepen customer relationships and increase revenue per user. Savings, lending and other balance-sheet products can provide more stable income streams than payments and foreign exchange services alone.

Matt Baxby, chief executive of Revolut Bank Australia, described the licence as a platform for broadening the company’s product range while retaining its focus on a seamless digital customer experience.

Australia Strengthens Revolut’s Global Banking Model

The Australian approval forms part of Revolut’s effort to transform itself from an international fintech application into a globally regulated banking group.

The company now operates banking entities across the European Economic Area, the UK, Mexico and Australia, while continuing to pursue licences in other important markets.

Revolut recently launched its banking operation in Mexico, where it has already attracted more than 500,000 retail customers. It is also seeking a banking charter in the US and has obtained additional regulatory approvals in the UAE and Peru.

Australia therefore provides both a commercial opportunity and a test of whether Revolut’s model can succeed in a mature banking market outside Europe.

Licence Brings New Responsibilities

The licence gives Revolut greater freedom to compete, but it also brings higher regulatory expectations. As an authorised deposit-taking institution, the company must meet prudential requirements covering capital, liquidity, governance and risk management.

It will also face established competition from Australia’s largest banks, as well as digital challengers offering app-based savings and lending products.

Revolut’s advantage lies in its international customer base, cross-border functionality and ability to provide multiple financial services through a single platform. The challenge will be converting that engagement into profitable, long-term banking relationships.

Securing the Australian licence is a regulatory milestone, but it also a significant step in Revolut’s evolution to demonstrate that a digital-first financial platform can operate as a fully fledged bank across multiple regions.