New bank coming to South Africa

Revolut has officially submitted its Section 12 application with the Reserve Bank’s Prudential Authority, taking the first step to establish a licensed bank in South Africa. 

The United Kingdom-based banking giant has also announced that former African Bank CEO Dr Gaby Magomola will be the chairman of the South African bank. 

Revolut is a banking giant, with over 65 million retail customers around the world and presents a significant competitor to South Africa’s existing traditional banks and newer digital banks. 

The bank’s expansion to South Africa was first announced on 23 September at the launch of its new global headquarters in London. 

On 14 November, the bank announced it had formally submitted its Section 12 application to the Prudential Authority and Magomola’s appointment as chairman.

Revolut said in a statement that Magomola brings decades of experience in finance, governance, and economic transformation to the bank. 

“His appointment marks an important milestone in Revolut’s commitment to responsible growth, innovation, and access in South Africa’s evolving financial landscape,” the statement read. 

“This comes as the business confirms it has officially submitted its Section 12 application – the first formal step governed by the Banks Act to establish a bank in South Africa.” 

Magomola has held senior executive positions at Citibank, Barclays, FNB, and is a former CEO of African Bank. He recently stepped down as the deputy chairman of the Development Bank of Southern Africa. 

“Dr Magomola’s experience is invaluable as we deepen our commitment to the South African market,” Revolut South Africa CEO Jacque Meyer said. 

“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.”

The announcement represents a significant strategic entry for Revolut as its first application in Africa. The company plans to expand further in Africa as it works toward becoming the world’s first truly global bank.

“Becoming a licensed bank will allow us to bring a full suite of products to the market and ensure we become the go-to financial app for millions of South Africans,” Meyer said. 

Revolut is rapidly expanding its global footprint. Its mission is to become a top-three financial app in every market it enters and enter 30 new markets by 2030. 

Now operational across Europe, the UK, Australia, Japan, New Zealand, Singapore, and the US, Revolut is making significant progress on licensing in key regions.

In Latin America, the company expects to launch as a bank in Mexico early next year, and is also moving forward with plans to enter Colombia and Argentina.

Often termed a ‘neobank’, Revolut offers free and subscription-based digital banking services through its mobile app. 

Features include domestic and international bank transfers, debit and credit cards, stock and crypto trading, as well as traditional savings accounts and loans.