Revolut has taken a decisive step in its African expansion by formally applying to establish a bank in South Africa and appointing veteran banker Gaby Magomola as chairman of its local business, setting up a test case for how the country’s regulators view global fintech entrants.
On September 23, Revolut announced it would seek a full commercial banking licence in South Africa as part of a wider global push to reach 100 million customers by mid-2027 and enter 30 new markets by 2030. At that time, the firm described South Africa as a “key growth market” and its first target for a banking licence on the continent, citing the country’s diversified economy, high digital adoption and growing appetite for innovative financial services.
Revolut has now confirmed that it has submitted a Section 12 application under the Banks Act to the Prudential Authority (PA) within the South African Reserve Bank (SARB), the first formal step in the licensing process.
A Section 12 application is the gateway for any prospective bank seeking authorisation to establish operations in South Africa. The PA operates inside the SARB as the prudential supervisor of banks and is responsible for granting licences and overseeing capital, liquidity and risk standards, while the Financial Sector Conduct Authority (FSCA) focuses on market conduct under the country’s “Twin Peaks” regulatory model.
Revolut has said it will work closely with the SARB throughout the process. A successful application would allow the company to offer a full suite of banking products in South Africa rather than relying on lighter-touch payments permissions, which it has used in some other markets.
Magomola appointment signals local credibility
Alongside the application, Revolut has named Gaby Magomola as chairman of Revolut South Africa, with effect from January 2026.
Magomola is one of South Africa’s most prominent banking figures, with senior roles at Citibank, Barclays and First National Bank on his CV, as well as a stint as chief executive of African Bank and, more recently, deputy chairman of the Development Bank of Southern Africa. He has also held a series of board positions across listed and unlisted companies and is widely associated with efforts to drive inclusive economic growth and transformation in the financial sector.
Revolut South Africa chief executive Jacques Meyer said Magomola’s experience would be “invaluable” as the business deepens its commitment to the market and navigates local regulation, adding that his counsel would help ensure Revolut “build a locally relevant service that addresses the financial needs of all customers in South Africa”.
For his part, Magomola framed the project in terms of access and inclusion, saying Revolut had “proven to be a catalyst for change in global finance” and that the goal in South Africa was “not just to launch a product, but to champion greater financial access and innovation for everyone across the country.”
A crowded and closely watched digital banking market
Revolut will enter a South African banking landscape that has already seen a wave of digital competition. Over the past several years, TymeBank, Discovery Bank and Bank Zero have launched as digital-only players, winning millions of customers with low-fee transactional and savings accounts and app-driven propositions, while the country’s big incumbents have invested heavily in their own digital channels.
By 2023, TymeBank had more than 8.5 million customers, Discovery Bank around 2 million and Bank Zero over 700,000, according to market research, with TymeBank attracting additional international backing from Brazil’s Nubank in late 2024.
Against that backdrop, Revolut’s ambition to become a “top three” financial app in every market it enters sets a high bar. The firm will need to differentiate its offer in a segment where digital onboarding, low fees and app-based money management are already standard, while also meeting the prudential expectations that come with a full banking licence.
Regulators, meanwhile, are balancing a desire to foster innovation and competition with a clear focus on financial stability and consumer protection. SARB and the PA have taken a cautious approach to licensing and supervision, and recent legal disputes involving other institutions seeking banking licences have highlighted how contested and complex the process can be.
Part of a wider “bank-first” push
South Africa is one pillar of a broader, licence-led international strategy for Revolut. Globally, the company now has more than 65 million retail customers and is targeting 100 million by around the middle of the decade, supported by a $13 billion expansion plan that includes 30 additional markets by 2030.
In parallel with the South African application, Revolut has been securing or progressing banking and payments licences in Mexico, Colombia, India and the United Arab Emirates, even as its home-market authorisation in the UK has faced delays. The firm is currently operating under a restricted UK banking licence while regulators assess its global risk controls and compliance framework.
