Revolut has received an Authorised Deposit-taking Institution (ADI) licence from the Australian Prudential Regulation Authority (APRA), clearing the way for the UK fintech to accept customer deposits in Australia under the government-backed Financial Claims Scheme. The move lets Revolut offer Australian customers instant-access savings accounts that pay variable interest, calculated and added daily, and expands the company’s footprint in the region.
What the licence allows
With the ADI licence in hand, Revolut can hold Australian customer deposits protected by the Financial Claims Scheme up to A$250,000 per person. The firm is rolling out deposit accounts that feature variable interest rates as high as 5.05% and that compound at the end of each day. The licence also permits the company to provide a wider suite of banking products locally.
Customer features and pricing
Revolut’s Australian service will include instant-access savings accounts with no minimum deposit requirement, no monthly deposit targets and no withdrawal penalties—features the company highlights as differentiators from established banks. The fintech will also introduce fee-free credit cards and a rewards program tied to airlines and major retailers.
Revolut generates a portion of its revenue from subscription tiers; the company’s top ‘Ultra’ plan is billed at A$100 per month and, according to the company, bundles benefits valued at more than A$9,000 per year. Existing Revolut users in Australia will be automatically migrated to the new bank accounts, with the company providing guidance on the transition.
Scale, local presence and jobs
The banking licence marks Revolut’s first regulated banking presence in the Asia-Pacific region and is the company’s second bank licence outside the UK and Europe, following Mexico. The app is already widely used overseas and, in Australia, the company reports about 1.2 million retail and business customers who have used services such as foreign exchange and trading since its local launch six years ago.
Revolut employs roughly 120 people in Australia and expects to expand that workforce by about 20% over the next 18 months as it scales local operations.
Competitive implications for Australia’s banking market
The arrival of a licensed Revolut in Australia poses a direct challenge to the established major banks. The big four—Commonwealth Bank, NAB, Westpac and ANZ—have historically dominated retail banking, and previous overseas entrants and new challenger banks have had limited success in unseating them. Revolut’s strategy focuses on combining competitive rates, currency exchange and budgeting tools within a single app, a model the company describes as a ‘financial superapp.’
Revolut’s Australian chief executive argued that consumers are open to new providers that deliver an integrated experience, good value and features aligned with daily life. The company points to evidence that high-yield digital savings products can win market share, referencing recent growth by local digital players.
Regulatory context and broader expansion plans
The ADI licence follows Revolut’s earlier approval for a full UK banking licence in March, after a period in which the Bank of England had imposed restrictions while reviewing accounting and regulatory issues. Separate from its Australian application, Revolut has submitted a licence application in the United States that would enable it to operate nationally across all 50 states, and it has also applied for a full banking licence in New Zealand.
Revolut’s global footprint comprises tens of millions of customers worldwide, and the company has positioned the Australian licences as part of a broader international expansion strategy that includes retail banking, payments, foreign exchange and potentially mortgages in markets where it gains full banking authority.
What customers should expect next
Revolut says the Australian version of its app will increasingly match the product set available in the UK and Europe, with plans for embedded travel insurance and an expanded loyalty program. For now, Australian customers can expect automatic migration of existing app accounts to the new bank structure and access to the newly protected deposit accounts and the advertised daily-compounded savings rates.
The licence represents a notable regulatory milestone for Revolut in the Asia-Pacific region and a significant development for competition in Australia’s retail banking market.
Source: News.com.au