Revolut secures Australian banking licence from APRA

Revolut has received a full, unrestricted Authorised Deposit-taking Institution licence from the Australian Prudential Regulation Authority, giving the company permission to operate as a bank in Australia. Revolut said it is the first global fintech to receive an unrestricted ADI licence in the country, and the approval creates its first banking entity in Asia-Pacific.

The licence turns Revolut’s Australian business from a foreign exchange, card and trading app into Revolut Bank Australia, with the ability to take deposits and offer savings accounts, credit cards and loans. The company said it plans to invest nearly AU$400 million, about $280 million, in Australia over five years to support hiring, product development and the migration of more than 1.2 million local customers into the regulated bank.

From multi-currency card to deposit-taking bank

Revolut entered Australia six years ago with a multi-currency debit card. Since 2020, the local operation has held an Australian Financial Services Licence and a Credit Licence, which allowed it to sell foreign exchange, card and trading products but did not make it a deposit-taking bank.

With ADI status, customer balances can be covered by Australia’s Financial Claims Scheme up to AU$250,000. Revolut says that makes the app suitable for use as a main bank account, a harder sell than travel money and trading for a company still building trust in a market dominated by incumbent banks.

The Australian unit is led by chief executive Matt Baxby. Revolut was founded in 2015 by Nik Storonsky and Vlad Yatsenko and says it now has more than 75 million customers globally. It is already licensed as a bank in the United Kingdom, the European Economic Area and Mexico. The company also filed for a US national bank charter and reportedly considered a secondary share sale at a $115 billion valuation in June, following its UK banking licence in March.

Revolut reported global revenue of $6 billion in fiscal 2025, up 46%. It has not disclosed revenue or profitability for the Australian unit.

A direct run at the Big Four

The licence puts Revolut into direct competition with Commonwealth Bank, NAB, ANZ and Westpac. Revolut is offering new customers a 3% savings rate. Commonwealth Bank’s standard transaction account pays about 2.15%, while its conditional saver product can reach about 5%.

That rate comparison is useful but incomplete. Deposit rates change quickly, and the more difficult task for Revolut will be winning salary deposits, bill payments and mortgage relationships from customers who already use one of the Big Four. Australian digital challengers have had limited success at that shift.

The field also includes Macquarie, which has been expanding in retail transaction accounts and mortgages, plus smaller players such as Judo Bank, Up and Alex Bank. Volt Bank’s successors are also part of the local challenger bank story. Revolut brings a larger global customer base and brand than those local neobanks, but the Australian banking market has historically absorbed new entrants without losing much share at the top.

Revolut said its Australian transaction volumes rose 235% over the past year. Its customer base has grown to more than 1.2 million, up from just over 1 million when the ADI application was announced in February 2026. The local team has expanded from a small Melbourne staff in 2019 to more than 100 employees, with plans to add people in cities including Sydney and Perth.

The Australian licence also fits a broader expansion plan. Revolut has said it intends to invest $13 billion over five years to enter more than 30 new markets and reach 100 million customers worldwide. The company has not said how much of that target depends on gaining full banking licences versus continuing with lighter financial services permissions in individual markets.

This story draws on original reporting from TechFundingNews.