Fintech Revolut applies for banking licence in New Zealand

Friday, 6 December 2024

Revolut is already operating in New Zealand, including offering payment and card services.

Open banking Fintech Revolut has applied for a banking licence in New Zealand.

Revolut has banking licences in the UK and Europe.

Revolut is already operating in New Zealand offering an “all in one” money management app with payment, card and money management services.

However, it believes that becoming a bank would gain trust among the New Zealand public, and would mean it could hold deposits itself, rather than needing to hold money in accounts provided to it by registered banks.

Matt Baxby, Australia and New Zealand chief executive of Revolut, said the company aimed at becoming the world’s “first global digital bank”.

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Baxby said a banking licence would let Revolut offer interest-bearing savings products and a “broader range” of loan types.

It would not only target the household banking market, but would seek market share in small business banking and lending.

Because it was a digital bank, Revolut would aim to beat the big banks on price and innovation, the CE said.

“I think traditional banks haven't done a great job on innovation on the experience they offer, on the way their pricing works,” Baxby said.

Having a banking licence was important for building trust.

“Being a bank, being held to the highest regulatory standard, obviously has an element of trust that comes with it,” he said.

Matt Baxby, Australia and New Zealand chief executive of Revolut.

Georgia Grange, who heads Revolut’s New Zealand operation, would not comment on when it might get its banking licence.

She and Baxby said Revolut would also not comment on whether Revolut would join the Banking Association, or sign up to a voluntary scam compensation the big banks are working on.

Grange said: “Receiving a banking license will allow Revolut to become the first global digital bank in New Zealand and will drive much needed competition across the industry.

“We look forward to working with the Reserve Bank of New Zealand on our application.”