Revolut is an ambitious UK neobank that allows Australian customers to spend money without fees in multiple locations overseas.
The company hasn't launched digital mortgage products yet, but it seems like a question of when rather than if. We will update this page as more information becomes available.
- Revolut launched in the UK in 2015 and was founded by Vlad Yatsenko and Nikolay Storonsky.
- The company has over 3 million customers worldwide and is backed by investors such as Facebook, Dropbox and Skype.
- In Australia Revolut currently offers an app and personal account that lets you spend money without fees overseas.
Revolut hasn't offered much information about when it will offer mortgages in Australia, but the company has an Australian financial service (AFS) licence and is in the process of becoming an authorised deposit-taking institution: these are legal requirements a company needs to obtain when selling financial products.
In the UK Revolut has partnered with online mortgage broker Trussle to allow customers to switch mortgages easily via its app.
Perhaps Revolut will try something similar in Australia, acting as a platform that helps users switch. Or it may offer mortgages of its own (perhaps with a partner bank), using its technology to make the process cheaper and easier than a traditional lender.
Speed is key
Speed will be a key selling point, whatever the service looks like. In the UK, Revolut allows customer to apply for a personal loan via its app in two minutes (and receive the money instantly).
Data analytics for customers
Revolut offers budgeting tools and user's own data to help them track their spending and make better decisions. It seems likely it would make similar information available for home loan customers.
Fintech mortgage competition is growing
Revolut is one of a growing number of fintechs and neobanks looking to shake up Australian mortgages and finance more generally.
- Xinja. This neobank launched a prepaid card in 2018 and is planning to roll out a wider range of products, including mortgages. It’s currently trialling home loans on a very limited basis to a closed network.
- Volt. Another neobank startup, Volt hasn't launched yet but has the distinction of being the first lender of its kind to get a full banking licence. Products are currently being tested.
- Athena. A fintech that's solely focused on mortgages, Athena launched in 2019 with competitive products for investors and owner-occupiers, billing itself as "the home loan wrecker."
- 86 400. This digital bank is planning to launch in 2019 with savings accounts first, then home loans. It doesn’t have banking licences yet but has hired an impressive line-up of banking talent.
- Tic:Toc. Acting more like a traditional lender, Tic:Toc's high-speed application platform can process a borrower's application in real time.