A$400 million in planned investment by Revolut arrives in a market still dominated by the Big Four. The Australian Prudential Regulation Authority granted Revolut Payments Australia Pty Ltd an authorised deposit-taking institution licence on July 21, 2026, converting the local app into a bank able to accept deposits covered by the Financial Claims Scheme. Retail customers can now hold government-guaranteed deposits up to A$250,000 per account holder, and Revolut has started marketing instant-access savings at up to 5.05% p.a., paid daily. Households and small businesses are the immediate targets, and the group says it serves about 1.2 million Australians through its app.

The licence is an operational breakthrough for Revolut, while Australia remains a concentrated market dominated by Commonwealth Bank, NAB, Westpac and ANZ. APRA issued the ADI licence to Revolut Payments Australia Pty Ltd on July 21, 2026, and the group's local holding structure was also licensed as a non-operating holding company under the Banking Act 1959.

What the licence changes

The APRA approval brings deposits in Revolut accounts inside the Financial Claims Scheme, the government safety net that covers up to A$250,000 per account holder in the event of a bank failure. That legal and regulatory shift unlocks core banking products on day one. Revolut has begun offering instant-access savings accounts with headline rates as high as 5.05% p.a., with interest calculated and paid daily. The firm has also introduced business savings accounts reported at variable rates up to 4.25% on balances up to A$5 million, and it says it will offer credit cards and personal lending in the market.

The product rollout builds on earlier local authorisations. Revolut secured an Australian Credit Licence from the Australian Securities and Investments Commission in February 2022, and the ADI approval extends the company's stack from cards, currency exchange and stored-value accounts into regulated deposit-taking and lending. Revolut's Australian licence is its first in the Asia-Pacific region and its second licence outside Europe, after a prior approval in Mexico.

How Revolut plans to compete

Revolut is entering Australia with scale and a subscription-led revenue model. The company says it serves about 1.2 million retail and business customers through its app and it sells tiered subscriptions, including a top-tier plan priced at A$100 a month. Executive commentary frames the licence as both credibility and capability. Matt Baxby, chief executive of Revolut Bank Australia, described winning the licence as a "defining moment," and founder Nik Storonsky has linked the Australian push to Revolut's global bank strategy while committing near-term capital to the market.

The company will pitch higher promotional savings rates and integrated international payments as customer-acquisition levers, and it highlights business features such as international payments and card issuance for small and medium-sized enterprises. Revolut has backed the expansion with a multi-year investment commitment of about A$400 million and says it will deploy that capital in Australia over coming years.

That strategy comes with risk. Previous neobank entrants in Australia have had mixed outcomes, with some challenger brands winding down or being acquired while others found niche routes to scale. Revolut's executives point to an existing customer base, APRA oversight and a broad product set as the factors that separate them from earlier challengers.

The company has also applied for a full banking licence in New Zealand, and it says the Australian ADI will support a broader regional push.

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Revolut has applied for a full banking licence in New Zealand and committed about A$400 million to build its Australian operation, now backed by APRA-authorised deposit-taking powers.

This article was created with AI assistance.