APRA’s move hands the fintech permission to compete for deposits, credit cards and day-to-day accounts in the same arena as major banks. Australians now assume their bank will be fully digital and they only notice when it falls short.
APRA’s approval of Revolut as an authorised deposit-taking institution shifts the conversation from technology to market share and trust. The licence means Revolut can legally hold deposits and issue products that once belonged almost exclusively to long-established banks. Customers are not choosing between “digital” and “traditional” banking anymore because every serious player operates through apps and online platforms.
A slick interface or remote account opening might have been a differentiator five years ago but now it simply gets a bank onto the consideration list.
Roy Morgan’s latest Finance data shows how deeply this shift has landed in everyday behaviour across Australia. More than half of Australians, 56.8%, say their ideal is to handle all banking without stepping into a branch.
Nearly two-thirds, or 64.2%, already enjoy paying with their mobile phones, treating tap-and-go on a handset as normal. Features once marketed as cutting-edge now function as hygiene factors and customers punish banks that lag rather than reward those that keep pace.
The competitive fight now moves from digital capability to brand strength, pricing, ecosystem and perceived security. Digital-only players like Revolut arrive with modern tech stacks and global experience but they must still win long-term trust from depositors wary of newer names.
Incumbent banks keep their branches and legacy systems yet operate in a world where branch visits are increasingly unwanted. The tension between regulatory approval, customer expectations and brand loyalty is set to define the next phase of Australian retail banking.
