Revolut, the UK-based digital bank, is actively pursuing a banking license in Australia, according to Matt Baxby, the company's Australian head. The neobank is in discussions with local regulators to gain approval for accepting customer deposits, marking a significant expansion of its services in the region.
Revolut's Australian Expansion Strategy
- Regulatory Progress: Revolut Australia secured a financial license last year and registered as a digital exchange with the country's anti-money laundering agency.
- APRA Engagement: The subsidiary has initiated talks with the Australian Prudential Regulation Authority (APRA) and plans to formally apply for a banking license.
- User Growth: Since its 2021 launch in Australia, Revolut has attracted over 100,000 users for its prepaid cards, foreign exchange, and cryptocurrency trading services.
👉 Explore how Revolut compares to traditional banks
Australia's Banking Landscape
Australia's banking sector is dominated by the "Big Four":
- Commonwealth Bank of Australia
- Westpac Banking Corporation
- Australia and New Zealand Banking Group (ANZ)
- National Australia Bank (NAB)
These institutions control approximately 80% of the market share. While digital challenger banks have emerged in recent years, many have either been acquired by major banks or collapsed, prompting stricter licensing regulations from APRA.
Revolut's Global Position
- User Base: 16+ million worldwide since its 2015 launch
- Service Offerings: Foreign exchange, insurance, trading, and crypto services
- Profitability: Not yet achieved, despite rapid growth
- Recent Funding: $800 million July 2021 investment led by SoftBank Vision Fund and Tiger Global, valuing Revolut at $33 billion (Europe's second-largest fintech unicorn after Klarna)
👉 Learn about fintech unicorn valuations
Frequently Asked Questions
Q: When did Revolut launch in Australia?
A: The digital bank began Australian operations in 2021.
Q: What services does Revolut currently offer in Australia?
A: Prepaid cards, foreign exchange transactions, and cryptocurrency trading.
Q: Why is Revolut seeking an Australian banking license?
A: To legally accept customer deposits and expand its financial service offerings.
Q: How does Australia's banking sector compare to other markets?
A: Highly concentrated, with the Big Four banks controlling 80% of market share.
Q: What was Revolut's valuation after its July 2021 funding round?
A: $33 billion, making it Europe's second-largest fintech unicorn.
Q: Has Revolut become profitable yet?
A: No, despite its rapid global expansion and diverse product offerings.