Global fintech giant Revolut has formally applied for a South African banking licence, signalling its intention to enter the local market as a digital bank.
The company confirmed in a media statement that it has submitted its Section 12 application under the Banks Act – the first regulatory step required to establish a licensed bank in the country.
Read:
Fintech, AI and growth: Romeo Kumalo’s African investment thesis
SA banks step up Africa drive amid fintech rivalry
FirstRand takes stake in Jordaan-backed fintech Optasia
Revolut, which has more than 65 million retail customers worldwide, says the move reflects its commitment to boosting financial innovation, competition and access in South Africa.
As part of its expansion drive, it also announced the appointment of veteran banker Dr Gaby Magomola as the inaugural chair of Revolut South Africa.
ADVERTISEMENT
CONTINUE READING BELOW
Dr Gaby Magomola, chair of Revolut South Africa. Image: Supplied
Magomola, a former CEO of African Bank and ex-deputy chair of the Development Bank of Southern Africa, brings more than four decades of experience across Citibank, Barclays and First National Bank.
Revolut was founded in London in 2015 by former derivatives trader Nikolay Storonsky and software engineer Vlad Yatsenko.
It operates across the European Economic Area and several international markets, offering banking services through its Lithuanian subsidiary, which holds a specialised banking licence from the European Central Bank.
ADVERTISEMENT:
CONTINUE READING BELOW
The licence allows Revolut to provide deposit accounts and lending products across Europe, while in the UK it currently operates under a restricted banking licence granted in 2024.
Revolut’s licence application is against the background of an already crowded banking space in South Africa with several new entrants competing for market share.
Old Mutual launched OM Bank earlier this year, adding to a field that already includes digital-only players such as TymeBank and GoBank.
Read: How upstart Old Mutual Bank plans to take on Capitec
Follow Moneyweb’s in-depth finance and business news on WhatsApp here.