Revolut Applies for South African Banking Licence
London-based digital bank Revolut has applied for a full banking licence in South Africa, setting up potential competition with local digital lenders TymeBank, Discovery Bank and Bank Zero. If approved, it would mark Revolut’s first formal entry into Africa.
Founded in 2015, Revolut is one of the world’s largest digital banks, with over 65 million customers. Its services extend beyond basic banking to include multi-currency accounts, fee-free currency exchange, stock and commodity trading, cryptocurrency, corporate banking, and insurance. Revolut would be entering a market where three digital-only banks are already active.
TymeBank has expanded rapidly, with more than 10 million customers, and recently secured USD 150 million in funding from Nubank. Discovery Bank, launched in 2019, focuses on middle- and upper-income customers and surpassed one million clients in 2024. Bank Zero, a smaller competitor, was acquired by Lesaka Technologies last year in a deal worth ZAR 1.1 billion.
South Africa’s banking sector remains dominated by long-established traditional banks, but challengers are steadily gaining market share. Loyalty, however, remains a powerful barrier. A 2024 Accenture study found that a customer’s primary bank captures 73% of their total banking revenue, one of the highest rates globally. That level of stickiness makes switching difficult but also underscores the need for banks to differentiate.
Revolut’s application reflects its strategy of securing full licences in new markets to deliver a complete product suite. If approved, its entry could expand consumer choice, introduce new services not widely available locally, and increase competitive pressure on incumbent banks and the country’s existing digital-only players.