Revolut
has submitted an utility 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 utility 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 Improvement 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 world finance, and I
stay up for guiding its mission in South
Africa,” Magomola stated. “Our objective isn’t just to
launch a product, however to champion higher 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 % surge in clients. Within the second quarter, the corporate’s income
reached $1.4 billion, rising by almost 50 % 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 purchasers 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 Outdated Mutual launched OM Financial institution in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 utility and greater than $135 million in
expertise 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 – Customary Financial institution,
FirstRand, Nedbank, Absa, and Investec – controlling almost 90% of
whole sector property as of March 2023.

Revolut
operates with banking licenses in Lithuania, Australia, Mexico,
and Japan, though the authorization in its residence nation, the
UK, stays restricted. The corporate introduced in September it could deploy $13
billion throughout world enlargement efforts, focusing on 100 million
clients by mid-2027.

South
Africa represents its entry level for Africa, with
further license functions underway in Mexico, Colombia, and
Argentina.

Regulatory Gauntlet Forward

If regulators
transfer with out delays, Revolut may obtain preliminary suggestions by
mid-2026, with full approval potential in late 2026 or early 2027.
A full license would permit the corporate to take deposits, prolong
credit score, and supply multi-asset monetary merchandise beneath South
African legislation.

Jacques Meyer,
who runs Revolut’s South African unit, stated Magomola’s counsel would
show helpful as the corporate works by way of native regulatory
necessities.

“His strategic
counsel might be vital in navigating the native regulatory
atmosphere, making certain we construct a domestically related service
that addresses the monetary wants of all clients
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 presently eyeing an IPO with a possible market cap of $75 billion.

This text was written by Damian Chmiel at www.financemagnates.com.