Revolut Has 1.2 Million Australians. Mortgages Could Be Next

Revolut is weighing an entry into Australia's mortgage market, according to Revolut Australia CEO Matt Baxby, who told Reuters on Tuesday the fintech views home lending as a possible next step after obtaining its first Asia-Pacific banking licence last month.

No mortgage product, interest rate or launch date has been announced. Baxby said Revolut's 1.2 million local users give it a starting pool for loans, and that a mortgage would be the largest relationship product added to an app best known for payments and foreign exchange. The company said domestic transactions have since overtaken overseas activity among local customers.

Licence opens the door to lending

The Australian Prudential Regulation Authority (APRA) granted Revolut Payments Australia authorised deposit-taking institution (ADI) status last month, effective July 21. Previously, the local entity operated mostly as a payments platform under Australian financial services and credit licences. The ADI approval allows it to take deposits and expand credit products directly, and Revolut has since launched savings accounts and credit cards. Customer deposits are now covered by Australia's Financial Claims Scheme. The UK market followed a similar path, with Revolut starting to roll out bank accounts in March after a lengthy licensing process.

Revolut Australia's 2025 revenue rose 74% to A$70.8 million (about $49.8 million), with net profit of A$7.4 million, according to accounts cited by Reuters. Net interest income jumped 110% to A$17.1 million. The local business had already passed 1 million retail users and plans to invest nearly A$400 million in Australia over five years. Its subscription plans run from A$5.99 to A$99.99 per month.

Australia's big four banks — Commonwealth Bank, Westpac, National Australia Bank and ANZ — control at least 70% of banking, including mortgages and deposits, while Macquarie has become the fifth-largest home lender. Incumbents already offer digital mortgage products: Commonwealth Bank launched Unloan in May 2022 and ANZ introduced 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 earlier challengers because it combines deposits with technology and a broader product range, but sees limited near-term risk to incumbent earnings. Earlier Australian entrants struggled: Xinja closed in 2020, and Volt shut its deposit business in 2022 after failing to raise enough capital, holding about A$80 million in home loans at the time.