Global fintech Revolut becomes NZ's 27th registered bank, offers new customers a 3.50% p.a. introductory savings rate on personal accounts

The Reserve Bank (RBNZ) has approved a banking registration licence for Revolut NZ after an almost two-year process.

The registration means Revolut Bank NZ has become the 27th registered bank in New Zealand and the first fintech to be given an NZ banking licence.

Revolut Bank NZ was granted bank registration under the Banking (Prudential Supervision) Act 1989, which is being replaced by the Deposit Takers Act 2023 when it takes effect in December 2028.

Revolut was founded by its chief executive Nikolay Storonsky – a former Lehman Brothers trader – and Vlad Yatsenko in 2015. It now has 80 million customers globally across 160 countries and regions who make more than one billion transactions every month.

In a statement, Storonsky said Revolut NZ’s bank licence marked the seventh bank licence the company has acquired since it was founded 11 years ago.

“We are confident our offering will bring true competition to the New Zealand banking sector,” he said.

Revolut NZ has been operating in NZ as a financial services provider since July 2023 and began seeking banking registration in 2024. The company said at the time that an NZ banking license would pave the way for the launch of new products and features, like interest-bearing savings products and a wider range of credit/debt options. 

Revolut NZ was tight-lipped about where the process was at when asked by interest.co.nz about it in June earlier this year. However, Georgia Grange, Revolut’s head of NZ, said at the time that momentum on seeking out an NZ banking licence hadn’t slowed down. 

On Tuesday, RBNZ specialist supervision director Scott McKinnon said Revolut NZ has met the required standard for bank registration in NZ.

The Reserve Bank recognised the value that “credible new entrants” can bring to a competitive and efficient financial system, he said.

“Our approach to bank registration applications remains rigorous and considered, with each application assessed against relevant prudential and statutory requirements,” McKinnon said.

License 'launchpad'

The fintech-turned-bank has plans to spend $120 million over the next five years on growing its NZ operation across different business facets, including products, people and marketing.

Revolut Bank NZ chief executive Ryan Brosnahan said the company had experienced “massive growth” since launching in NZ in 2023.

“It’s clear the market is primed for disruption, and this licence is the launchpad for our next chapter as we continue to build a seamless, secure, and customer-first banking experience in Aotearoa,” he said.

As part of its banking launch, Revolut Bank NZ is rolling out a 3.50% p.a. variable introductory savings rate on balances up to NZ$50,000 for four months. It will only be available to all new Revolut Bank NZ personal customers who join during the limited-time promotional period, with interest paid daily and zero withdrawal penalties.

After the four-month introductory period, balances will transition to an ongoing rate based on the user's plan – currently reaching up to 3.00% p.a. (variable) for Ultra plan users.

Revolut Bank NZ said its Instant Access Savings account for both Personal and Business customers includes:

• Daily interest: Variable interest calculated, compounded, and paid directly into the account every single day.
• Zero withdrawal penalties: Customers can make unlimited immediate withdrawals from their savings account instantly and with no withdrawal fee whenever they need.
• No monthly requirements: No minimum balance requirements, giving customers total freedom.
• Smart saving tools: Personal customers can create and customise multiple savings accounts to support their goals, set up automated recurring or income-sorted transfers, and use transaction round-ups to automatically sweep spare change from everyday purchases straight into their savings accounts.
• Market-leading security: To make saving stress-free and give customers greater control, the account features a suite of market-leading security tools including 2FA authentication,  biometric security, geotargeted security controls, real-time spending alerts, and in-app card controls.
• DCS Protected: Eligible deposits are protected by the New Zealand Government's Depositor Compensation Scheme (DCS), up to NZ$100,000.

Savings rates are based on the customer's plan, all rates are variable: 

• Personal (max balance NZ$1M) 
• Standard and Plus: earn 2.00% p.a. 
• Premium: earn 2.25% p.a. 
• Metal: earn 2.75% p.a.
• Ultra: earn up to 3.00% p.a. (Metal rates will be applied to combined balances over $250k) 

Business (max balance NZ$5M):

• Basic: earn 1.25% p.a
• Grow: earn 1.85% p.a
• Scale: earn 2.00% p.a
• Enterprise: earn 2.25% p.a

NZ business 'will likely grow rapidly' but still 'remain a small lender'

S&P Global Ratings has assigned Revolut Bank NZ a long-term issuer credit rating of 'BBB+'.

“We view Revolut Payments New Zealand Pty’s (RPNZ) credit profile as weaker than the New Zealand major banks, noting the start-up nature of RPNZ's business activities in New Zealand,” the American credit rating agency said.

“RPNZ's business in New Zealand will likely grow rapidly, as it is off a small base. The company has seen strong growth in a number of global markets, using its technological platform to differentiate it from traditional banks. We expect RPNZ will target local transaction accounts and credit cards from larger bank peers. Despite likely rapid growth, we expect RPNZ to remain a small lender in the overall New Zealand market.”

S&P Global Ratings said as Revolut’s business grows in NZ, the credit agency expects it to continue to benefit from parent company Revolut Ltd.'s technology, treasury capabilities, and other shared group services. Further group support is demonstrated by the capital contribution made by the group to support RPNZ meeting regulatory capital expectations to support rapid growth, it said.

“The positive outlook on RPNZ reflects our expectation that we would likely raise our ratings if we viewed the creditworthiness of the guarantor, Revolut Ltd., to have improved. We could raise the ratings on Revolut Ltd. if it increased its ALAC buffer in the next two years,” the credit agency said.

“We would likely lower our rating on RPNZ by multiple categories if the guarantee on its debt were to expire and not be replaced. We could raise the rating on RPNZ if we raise the rating on Revolut Ltd. This could occur over the next 12-24 months once Revolut Group Holdings Ltd. starts issuing bail-in debt and we are certain the group's ALAC buffer will exceed our adjusted 4% threshold of S&P Global Ratings' risk-weighted assets.”