Revolut granted banking licence by APRA
Global fintech Revolut now operates as a fully licensed bank in Australia after securing an Australian Prudential Regulation Authority (APRA) licence.
- Revolut now operates as a licensed bank in Australia.
- APRA granted Revolut an authorised deposit-taking institution (ADI) licence on 21 July.
- Eligible customer deposits can now be covered by the government’s Financial Claims Scheme.
APRA announced on 21 July that Revolut Payments Australia Pty Ltd has been authorised under the Banking Act 1959 to operate as an authorised deposit-taking institution (ADI).
Revolut now appears on APRA’s register of ADIs.
"We are now Revolut Bank Australia," chief compliance officer Scott Jamieson said in his LinkedIn post.
"Over the past few years, our teams have worked tirelessly to build our governance, risk, and compliance frameworks to world-class standards," he added.
Following the licence grant, Mr Jamieson announced the launch of Revolut Instant Access Savings product and Revolut Credit Cards.
He also said the banking licence will underpin the next phase of Revolut's Australian expansion.
Meanwhile, Revolut Australia NOHC Pty Ltd was simultaneously licensed as a non-operating holding company.
What the banking licence means for customers
Prior to the APRA approval, Revolut operated under an Australian Financial Services Licence and Australian Credit Licence following its local launch in 2020.
Since it was not legally a bank yet then, customer balances were generally held under safeguarding arrangements rather than traditional bank deposits.
Now an ADI, Revolut can describe itself as a bank and accept deposits directly.
Eligible deposits will be covered by the Australian Government’s Financial Claims Scheme, which protects up to $250,000 per account holder per institution in the unlikely event the bank folds.
Additionally, Revolut must now meet APRA prudential requirements, including minimum capital and liquidity standards.
From fintech challenger to licensed bank
Since launching locally six years ago, the London-based fintech has grown to more than one million Australian customers.
Revolut built its early Australian customer base by offering lower-cost foreign exchange and international transfers.
Its products include a multi-currency debit card, digital wallet, international money transfers, digital asset and US stocks trading, and unsecured personal loans.
Mr Jamieson earlier said the fintech’s clients have collectively saved $250 million in foreign exchange charges compared to traditional banks since its launch.
"Combined with our existing FX and travel products, I'm sure I can say Revolut is already Australia’s #1 bank for travellers – and we are just getting started," he said.
Revolut has become one of the major challengers to traditional banks, particularly among frequent travellers and digitally savvy users.
Following the one-million customer milestone earlier this year, Revolut announced a $400m investment strategy aimed at expanding its presence in Australia over the next five years.
"This year will see us double down on marketing investment and remain aggressive with product delivery, pushing us into our biggest year yet," Revolut Australia head of growth Charlie Short said.
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