Revolut Becomes New Zealand's First Digital-Only Bank

Revolut has become the first fully digital bank in New Zealand after receiving banking registration from the Reserve Bank on Tuesday. The London-based financial services firm, which serves 80 million customers globally, will now operate as the country's 27th licensed bank. It has previously functioned in the market as a financial services company since 2023.

The company has committed to investing 120 million New Zealand dollars in its local operations. Its services will include instant-access savings accounts for both personal and business clients, with funds protected under the New Zealand Depositor Compensation Scheme. In its most recent funding round, Revolut was valued at 115 billion U.S. dollars, a figure equivalent to 204 billion New Zealand dollars. This valuation positions it as the United Kingdom's most valuable fintech company.

The new entrant aims to challenge the market dominance of the four major Australian-owned banks, which currently control over 80 percent of the local market share. Scott McKinnon, the Reserve Bank's director of specialist supervision, stated that the central bank recognizes the value that credible new entrants bring to a competitive and efficient financial system. He noted that Revolut New Zealand has met the required standards for registration.

Nik Storonsky, Revolut's founder and chief executive, described the move as a key step toward becoming the world's largest digital bank. He said securing the seventh bank license for the company, and the fifth obtained within the current year, reflects the strength of its business model. Storonsky expressed confidence that the new offering will introduce true competition to the New Zealand banking sector.

Storonsky characterized the license as a defining moment for the company's growth in the region. He noted that the market is prepared for change and that the license serves as a launchpad for the next phase of building a secure and customer-focused banking experience in Aotearoa. S&P Global has assigned Revolut an investment-grade BBB+ long-term credit rating with a positive outlook.