Revolut Has 1.2 Million Australians. Mortgages Could Be Next

Revolut is considering entering Australia's mortgage market, Revolut Australia CEO Matt Baxby told Reuters today (Tuesday). The plan would extend Revolut into home lending after it won its first Asia-Pacific banking license last month.

For its 1.2 million local customers, a mortgage would be the largest relationship product yet added to an app built around payments and foreign exchange. Revolut began with about 30,000 Australians on a waiting list when it launched locally in August 2020.

No mortgage product or interest rate has been announced. There is no launch date. Baxby said home lending was a possible next step in a market dominated by established banks.

Bank License Opens the Door to Lending

The Australian Prudential Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Authority (APRA) granted Revolut Payments Australia permission to operate as an authorized deposit-taking institution last month. Revolut said the license took effect on July 21 and is its first banking approval in Asia-Pacific.

Before the approval, Revolut operated mainly as a payments platform under Australian financial services and credit licenses. The ADI status allows the local entity to take deposits and expand credit products directly.

Revolut started offering savings accounts and credit cards after receiving the approval. Its banking status also places customer deposits under Australia's Financial Claims Scheme.

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Australia follows Revolut's home market, where the company began rolling out UK bank accounts in March after completing a licensing process that lasted several years. The UK authorization allows it to hold deposits and offer lending products directly.

Baxby told Reuters that Revolut's existing Australian users provide a starting pool for loans. Those customers previously used the app mainly for international payments and currency exchange, while domestic transactions have since overtaken overseas activity, according to the company.

Local Business Reports a Second Annual Profit

Revolut Australia recorded A$70.8 million (about $49.8 million) in 2025 revenue, up 74% from the prior year, according to financial accounts cited by Reuters. Net profit was A$7.4 million, while net interest income increased 110% from the prior year to A$17.1 million.

The local customer count has also continued to rise. FinanceMagnates.com reported in February that Revolut had passed 1 million Australian retail users and planned to invest nearly A$400 million in the country over five years.

Revolut also uses a paid-account model that is less common in Australian retail banking. Its four subscription plans range from A$5.99 to A$99.99 per month and carry different savings rates and fees.

Baxby said the Australian unit already earns money from foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term transactions and interchange fees in addition to interest income. Group services reduce the number of systems the local bank must develop on its own.

Digital Mortgage Rivals Are Already in the Market

Australia's four largest lenders, Commonwealth Bank, Westpac, National Australia Bank and ANZ, control at least 70% of banking, including mortgages and deposits, Reuters reported. Macquarie has expanded to become the fifth-largest home lender.

The incumbents already sell digital mortgage products. Commonwealth Bank launched Unloan in May 2022 with an online refinancing application. ANZ released its ANZ Plus digital home loan in November 2023.

"All the Big Four have their cannons pointed at the mortgage market," Baxby said.

UBS described Revolut as more credible than many earlier challengers because it combines deposits with technology and a broader product range. The bank said the near-term risk to incumbent earnings remained limited.

Earlier Australian challengers found that taking deposits without a sufficiently large lending book could be costly. Xinja closed in 2020.

Volt shut its deposit business in 2022 after failing to raise enough capital. It held about A$80 million of home loans when it announced the closure.