Revolut has become the first global FinTech to launch a full-service bank in Australia following a key regulatory approval.

The London headquartered neobank began offering services as Revolut Bank Australia earlier on Tuesday after it was granted a full Australian Deposit-taking Institution (ADI) licence by the Australian Prudential Regulation Authority, marking its first official bank in the Asia Pacific region.

It has also become the first internationally-headquartered bank to receive an unrestricted ADI licence.

The approval is backed by a commitment from Revolut to invest nearly 400 million Australian dollars (£209 million) into the local market over the next five years, which the bank said will go towards product innovation, growth, and employer footprint.

Revolut added that it hopes to transition its over one million retail customers and thousands of business ones into a “fully regulated banking ecosystem” right from launch.

Australia’s banking market is highly concentrated, with the so-called ‘Big Four’, Commonwealth Bank, National Australia Bank, Westpac, and ANZ Group dominating the landscape. They have previously withstood challenges from major international banks including Citigroup and HSBC and crowded out many neobanks that have attempted to enter the market.

Consultancy Simon-Kucher noted in an April article that the Big Four have key structural advantages including long-standing customer relationships, payroll-linked banking, and national ATM and branch infrastructure, all of which have contributed to a less mature neobanking market than in comparable economies.

Revolut is confident that its position is different, however. Matt Baxby, chief executive at Revolut Bank Australia, told the Financial Times that the company was already profitable in the country and its existing customer base meant it was starting from a stronger footing than other neobanks.

Baxby added in a statement: “Becoming a bank in Australia marks a defining moment in our journey, achieved through a relentless focus on delivering a better financial experience for Australians.

“It’s the launchpad for our next chapter, enabling us to expand into a broader suite of products, including savings and credit, to sit alongside the innovative services our customers already rely on every day. Our mission remains simple: to build the most seamless, secure, and customer-first banking experience for Australian consumers and businesses.”

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