Revolut
has submitted an application to operate as a licensed bank in
South Africa, filing paperwork with the country’s Prudential Authority
as it targets its first banking license on the continent.

The
London-based fintech confirmed it has
lodged a Section 12 application under the Banks Act, starting the regulatory process
that typically stretches 18 to 24 months before 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 previously ran
African Bank and served as Deputy Chairman of the Development Bank of
Southern Africa until recently. Magomola will formally assume the Chairman role
in January 2026.

“Revolut
has proven to be a catalyst for change in global finance, and I
look forward to guiding its mission in South
Africa,” Magomola said. “Our goal is not just to
launch a product, but to champion greater financial access and
innovation for everyone across the country.”

Revolut
continues to seek new markets, and the strategy appears to be paying off. Last
week, the fintech reported that its Singapore unit saw
a 125 percent surge in customers. In the second quarter, the company’s revenue
reached $1.4 billion, growing by nearly 50 percent compared with 2024.

Crowded Field for Digital
Challengers

Revolut’s
move puts it in direct competition with several digital
banks already fighting for customers in Africa’s
most developed banking market. Old Mutual launched OM Bank in
September after a near-decade buildup that included a 2022
license application and more than $135 million in
technology investment. TymeBank claims over 8.5 million
account holders, while Discovery Bank and Bank Zero have built
smaller but growing customer bases since their
respective launches.

The
South African banking sector holds roughly 900 billion rand ($50
billion) in assets, with the five largest institutions – Standard Bank,
FirstRand, Nedbank, Absa, and Investec – controlling nearly 90% of
total sector assets as of March 2023.

Revolut
operates with banking licenses in Lithuania, Australia, Mexico,
and Japan, although the authorization in its home country, the
UK, remains restricted. The company announced in September it would deploy $13
billion across global expansion efforts, targeting 100 million
customers by mid-2027.

South
Africa represents its entry point for Africa, with
additional license applications underway in Mexico, Colombia, and
Argentina.

Regulatory Gauntlet Ahead

If regulators
move without delays, Revolut could receive initial feedback by
mid-2026, with full approval possible in late 2026 or early 2027.
A full license would allow the company to take deposits, extend
credit, and offer multi-asset financial products under South
African law.

Jacques Meyer,
who runs Revolut’s South African unit, said Magomola’s counsel would
prove useful as the company works through local regulatory
requirements.

“His strategic
counsel will be critical in navigating the local regulatory
environment, ensuring we build a locally relevant service
that addresses the financial needs of all customers
in South Africa,” Meyer said.

Magomola
spent years at Citibank, Barclays, and First National Bank before
leading African Bank. He holds honorary degrees from the
University of South Africa and the University of Zululand, and received
Freedom of the City honors in Birmingham, Alabama.

Revolut
was founded in 2015 by former derivatives trader
Nikolay Storonsky and software engineer Vlad Yatsenko. The
company is currently eyeing an IPO with a potential market cap of $75 billion.

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

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