Revolut becomes New Zealand's first digital bank after Reserve Bank grants licence in under two years
Revolut becomes New Zealand’s first digital bank after Reserve Bank grants licence in under two years #
The Reserve Bank of New Zealand has granted Revolut a full banking registration licence, making the London-headquartered fintech the country’s first digital bank and its 27th registered bank overall. The approval came after an application process of nearly two years. Revolut has stated its goal is to build the world’s first truly global bank.
Revolut Bank New Zealand launched immediately upon registration. Existing users, more than 100,000 of whom have been customers since the company began operating in New Zealand as a financial services provider in July 2023, do not need to take any action to move to the new entity. Those customers’ eligible deposits are now covered under New Zealand’s Depositor Compensation Scheme up to NZ$100,000, a protection Revolut could not previously offer.
To attract new depositors, Revolut is offering an introductory savings rate of 3.50% per annum for personal accounts in the first four months, with daily interest payments and no withdrawal penalties. The four large Australian-owned banks collectively control roughly 85% of the New Zealand market.
Revolut has pledged to invest NZ$120 million into local operations over the next five years, covering product development, hiring, and growth. The company said the investment reflects its confidence in the market opportunity.
Revolut founder and chief executive Nik Storonsky described the New Zealand licence as the company’s seventh banking authorisation globally and the fifth secured in the current year alone, following approvals in the UAE, Mexico, Colombia, and Peru. Revolut holds full bank status in the UK, across the European Economic Area, in Australia, Mexico, and now New Zealand, and has an active bank charter application outstanding with the US Office of the Comptroller of the Currency.
Ryan Brosnahan, who leads Revolut Bank New Zealand, said the banking registration would allow the firm to expand its product range, including interest-bearing savings accounts and broader credit options that were unavailable to it as a non-bank financial services provider.
New Zealand’s banking sector has drawn scrutiny in recent years over concentration and pricing, with regulators and policymakers noting limited competitive pressure on the four incumbent lenders. Revolut’s arrival as a licensed deposit-taker is the most significant new entrant the sector has seen in some time and is expected to intensify debate over the pace of market reform.
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