Revolut, the financial platform known for its travel money cards and currency exchange platform, has become Australia’s newest bank after securing an authorised deposit-taking institution (ADI) licence.
The designation means the UK-based fintech can now offer government-backed deposit accounts and lending products, helping it battle against Australia’s Big Four banks.
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The Australian Prudential Regulatory Authority (APRA) on Tuesday granted Revolut Payments Australia Pty Ltd’s ADI licence, clearing the way for a suite of new financial offerings.
Revolut has moved quickly since the announcement, launching business savings accounts with variable interest rates up to 4.25% on balances up to $5 million, subject to monthly plan fees.
Interest is calculated, compounded, and fed back into the account daily, according to the fintech.
Those accounts are protected by the government’s banking safety net, which guarantees deposits of up to $250,000 should the underlying bank fail.
The fintech also promises integrated access to international money transfers, physical and virtual card issuance, and spending approval features for its business customers.
Revolut’s licence and new business account offering arrives just months after Matt Baxby, CEO of the fintech’s Australian operation, put a target on the Australian SME banking market.
“Part of the reason Australia was so attractive from the business point of view is it’s an economy built on small businesses,” Baxby told SmartCompany in April.
“Global citizens, constantly travelling and underserved competition hasn’t been there.”
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Deposit accounts and credit cards are also available to everyday household customers, with credit limits of between $1,000 and $35,000.
In a new statement, Baxby called winning the banking licence a “defining moment in our journey”.
He said the fintech’s “mission remains simple: to build the most seamless, secure, and customer-first banking experience for Australian consumers and businesses”.
“Securing this licence in a market as highly regulated and competitive as Australia is a testament to our business model and our team,” said Nik Storonsky, founder and CEO of Revolut.
Revolut joins a relatively small number of tech-forward ADI licencees, including Judo, Tyro, and Up Bank, which operates through Bendigo and Adelaide Bank.
But Revolut has previously called out Australia’s Big Four banks, not fellow fintechs and specialist business lenders, as its primary quarry.
“The competitors are the major banks… they’re the ones we can go after,” Baxby said in April.