Revolut wins full Australian banking licence

Revolut has secured a full Authorised Deposit-taking Institution licence in Australia, transforming its local presence from a stored-value platform into a direct competitor against established lenders. The approval from the Australian Prudential Regulation Authority (APRA) marks the fintech’s first fully licensed banking operation in the Asia-Pacific region.

The licence allows Revolut to offer government-protected deposits for the first time in Australia. Customer funds up to AUD 250,000 now fall under the country’s Financial Claims Scheme, matching protections already available at traditional retail banks.

Starting immediately, Revolut rolls out high-yield savings accounts offering 5.05% annually for retail customers and 4.25% for business users. These rates directly compete with offerings from incumbent banks criticized for slow adaptation to rising interest rate environments.

Native credit products are also part of the rollout, with credit limits ranging from $1,000 to $35,000. All products are distributed directly through the app, bypassing third-party brokers.

More than one million existing Australian customers will be moved to the new banking structure automatically, while new sign-ups will onboard directly into the licensed bank.

“Securing this licence in a competitive market like Australia is a sign to our business model,” said Nik Storonsky, founder and chief executive of Revolut. “Becoming a bank enables us to expand into a broader suite of products, including savings and credit, serving as the launchpad for our next chapter across APAC.”

The transition to an Authorised Deposit-taking Institution (ADI) subjects Revolut to APRA’s prudential framework, imposing strict operational standards. The firm must now comply with CPS 230 requirements covering third-party risk management, capital adequacy, and liquidity controls.

Revolut will face heightened scrutiny around anti-money laundering and counter-terrorism financing compliance under AUSTRAC mandates. Cyber resilience standards also apply, requiring robust threat vulnerability reporting across payment corridors.

Revolut’s entry into Australian banking follows struggles faced by earlier neobank entrants, such as Volt and Xinja, which exited the market after failing to achieve sustainable unit economics and adequate deposit retention. Unlike these earlier attempts, Revolut enters with significant advantages, including a global user base exceeding 75 million accounts and an existing Australian customer base of over one million.

The company’s scale allows it to subsidise regional expansion, providing diversified revenue streams from foreign exchange, cryptocurrency fees, and subscription services. Direct access to payment rails and clearing systems, including the New Payments Platform, eliminates intermediary banking costs.

The Revolut approval signals that major watchdogs are raising expectations for large stored-value platforms, pushing operators toward full prudential supervision rather than lighter-touch e-money frameworks. For fintech executives evaluating expansion into regulated markets, this shift carries operational implications, including the capture of net interest income through in-house lending products and rigorous third-party risk management.