New bank launches in Australia with plans for $400 million rollout
A global fintech has been granted an Australian banking licence, paving the way for the business to expand its footprint in the local finance sector and challenge the nation’s big four banks.
Revolut, a popular financial institution in Europe, has been granted an unrestricted licence from the Australian Prudential Regulation Authority.
Revolut has been granted an unrestricted licence from the Australian Prudential Regulation Authority. iStock
The company, which launched in Australia as a budgeting and personal finance app six years ago, markets itself as a “financial super app”.
From this week, the company will transfer the balances of its more than one million Australian customers to deposit accounts.
Customers will be protected by the federal government under the Australia’s financial claims scheme, up to a value of $250,000.
The company has committed to investing $400 million into its growth plans in Australia over the next five years.
The Australian banking licence will allow the business to carry out functions such as paying interest on savings.
Revolut chief executive officer Nik Storonsky has a plan to build a global bank with 100 million customers in 100 countries.
The service currently operates in more than 40 countries with 75 million customers worldwide.
“Launching our Australian bank has been a long-term strategic priority and marks another significant step in our mission to build the world’s first truly global bank,” Storonsky said.
Revolut reported a profit of $US2.3 billion globally last year, which was up 57 per cent on the previous year.
Locally revenue was $71 million in Australia, up 74 per cent year-on-year, with a net profit of $7.4 million, according to The Australian Financial Review.
The business was awarded a full banking licence in March in the United Kingdom.
Revolut chief executive officer Nik Storonsky. Bloomberg via Getty Images
The company has also submitted an application for a licence in the US, which would it allow the business to operate in 50 states.
The banking service is popular in Europe, where it offers mortgages in some parts of the continent.
The service has grown to 13 million customers in the United Kingdom, six million in Spain and five million in France.
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