Revolut, a UK-based fintech, launched Revolut Bank Australia on July 21 after receiving an unrestricted authorized deposit-taking institution (ADI) license from the Australian Prudential Regulation Authority (APRA).

The company said this was its first local banking license in the Asia-Pacific region.

In Australia, only ADIs can take deposits and conduct banking business. Restricted ADIs can begin only limited operations while they build full prudential capabilities.

Before launching the bank, Revolut said it had 1 million customers in Australia, where it first offered a travel card and foreign exchange services.

APRA says money held with an ADI is covered by the Financial Claims Scheme for up to A$250,000 (US$175,000) per account holder.

The move comes as Australia’s neobank market grows, but neobanks struggle to become customers’ main banking provider.

Less than 15% of consumers consider a neobank their primary bank, while digital banks such as Xinja and Volt have shut down.

Revolut said it plans to invest nearly A$400 million (US$279 million) in Australia over the next five years.

🔗 Source: Revolut