Revolut
has submitted an software to function as a licensed financial institution in
South Africa, submitting paperwork with the nation’s Prudential Authority
because it targets its first banking license on the continent.
The
London-based fintech confirmed it has
lodged a Part 12 software beneath the Banks Act, beginning the regulatory course of
that usually stretches 18 to 24 months earlier than approval or
rejection.
Revolut Names
Veteran Banker as Chairman for South African Operations
To steer
its South African operations, Revolut tapped Dr. Gaby
Magomola, a four-decade banking veteran who beforehand ran
African Financial institution and served as Deputy Chairman of the Growth Financial institution of
Southern Africa till not too long ago. Magomola will formally assume the Chairman function
in January 2026.
“Revolut
has confirmed to be a catalyst for change in international finance, and I
look ahead to guiding its mission in South
Africa,” Magomola stated. “Our objective isn’t just to
launch a product, however to champion larger monetary entry and
innovation for everybody throughout the nation.”
Revolut
continues to hunt new markets, and the technique seems to be paying off. Final
week, the fintech reported that its Singapore unit noticed
a 125 p.c surge in prospects. Within the second quarter, the corporate’s income
reached $1.4 billion, rising by practically 50 p.c in contrast with 2024.
Crowded Subject for Digital
Challengers
Revolut’s
transfer places it in direct competitors with a number of digital
banks already preventing for patrons in Africa’s
most developed banking market. Outdated Mutual launched OM Financial institution in
September after a near-decade buildup that included a 2022
license software and greater than $135 million in
know-how funding. TymeBank claims over 8.5 million
account holders, whereas Discovery Financial institution and Financial institution Zero have constructed
smaller however rising buyer bases since their
respective launches.
The
South African banking sector holds roughly 900 billion rand ($50
billion) in property, with the 5 largest establishments – Commonplace Financial institution,
FirstRand, Nedbank, Absa, and Investec – controlling practically 90% of
complete sector property as of March 2023.
Revolut
operates with banking licenses in Lithuania, Australia, Mexico,
and Japan, though the authorization in its house nation, the
UK, stays restricted. The corporate introduced in September it will deploy $13
billion throughout international enlargement efforts, concentrating on 100 million
prospects by mid-2027.
South
Africa represents its entry level for Africa, with
extra license purposes underway in Mexico, Colombia, and
Argentina.
Regulatory Gauntlet Forward
If regulators
transfer with out delays, Revolut might obtain preliminary suggestions by
mid-2026, with full approval attainable in late 2026 or early 2027.
A full license would enable the corporate to take deposits, lengthen
credit score, and supply multi-asset monetary merchandise beneath South
African regulation.
Jacques Meyer,
who runs Revolut’s South African unit, stated Magomola’s counsel would
show helpful as the corporate works via native regulatory
necessities.
“His strategic
counsel will probably be vital in navigating the native regulatory
setting, making certain we construct a domestically related service
that addresses the monetary wants of all prospects
in South Africa,” Meyer stated.
Magomola
spent years at Citibank, Barclays, and First Nationwide Financial institution earlier than
main African Financial institution. He holds honorary levels from the
College of South Africa and the College of Zululand, and acquired
Freedom of the Metropolis honors in Birmingham, Alabama.
Revolut
was based in 2015 by former derivatives dealer
Nikolay Storonsky and software program engineer Vlad Yatsenko. The
firm is at the moment eyeing an IPO with a possible market cap of $75 billion.
This text was written by Damian Chmiel at www.financemagnates.com.
