Georgia Grange: Head of Revolut NZ on financial technology firm applying to become a registered bank

Financial technology firm Revolut has applied to become a registered bank in New Zealand. 

Revolut already offers a “one-stop-shop" money management app here with payment, card and money management services. 

With a banking license, it hopes to offer things like credit cards, consumer loans and mortgages. 

Head of Revolut NZ Georgia Grange tells Tim Beveridge the firm is on a mission to build the world’s first truly global bank. 

Grange says consumers are constrained by a lack of innovation in the current traditional banking system in New Zealand. 

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
It's a financial technology firm, Revolute, as a brave contender
hoping to make it in the New Zealand market. Revolute
already offers a one stop shop money management app here
with payment, card and money management services, but they've recently
applied to become a registered bank in New Zealand with
a banking license that hopes to offer things like credit cards,

(00:38):
consumer loans and mortgages. And the head of Revolute New Zealand,
Georgia Grange, joins me.

Speaker 1 (00:44):
Now, good morning, term So tell us.

Speaker 2 (00:46):
About Revolute and what it offers and how it differs
to other banking services.

Speaker 3 (00:53):
Yeah, So, Revelute offers a digital account where you can
manage everything related to your money, all in the one app.
So our mission is to make things anything related to
money related easier and cheaper. And we're on a mission
to build the world's first truly global bank. So whether
it's banking, whether it's payments, investing or other features, we

(01:16):
have all in the one act, no matter what corner
of the world you're in.

Speaker 2 (01:20):
So you've applied for a banking license. Is that a given?
How complex is it to deal with all the regulations?

Speaker 3 (01:28):
Yeah, so it's definitely a complex process, but one that
we're very committed to. Looking after Kiwi's funds is not
a responsibility that we take lightly. It's very serious and
we are looking forward to being held to the highest
regulatory standards. Is that helps to bring a whole lot
of consumer trust as well. So yeah, we're ready to

(01:51):
embrace that diligence and the process with the Reserve Bank.
We look forward to working through that with them.

Speaker 2 (01:57):
How we have we got the balance right when it
comes to the regulations and balancing the safety of consumers
with enabling competition.

Speaker 3 (02:07):
Look, the issue consumers definitely have to be the top
priority in our eyes all of the time. However, we
are a firm believer that for too long the New
Zealand banks have headed a bit too easy. It means
that New Zealand consumers have been constrained via the traditional
banking system in New Zealand, there's been a lack of innovation.
The core systems and high fees that Kiwis have faith

(02:30):
definitely do not help Kiwis are managing their money and
we're definitely here to help change that. So yeah, definitely
safety number one priority, but competition has got to be
up there in terms of important.

Speaker 2 (02:41):
What difference does a banking license or will it make
to your current activities?

Speaker 3 (02:47):
So becoming a bank, like I mentioned a bit earlier,
it's really about being held to the highest regiltory standards
and making sure that that helps to bring a whole
lot of consumer trust. That's very important to us, and
then also it helps to unlock even more products that
we can bring to our Kiwi customers like interestperience, savings,
accounts and credit products as well.

Speaker 2 (03:07):
Do you think there in there needs to be in
terms of regularly changes, God, I kind of say that
word in terms of regulatory changes. Do there need to
be any changes within that banking sector to enable more competition?

Speaker 3 (03:20):
Look, yeah, the barriers to becoming a bank are very
high in New Zealand, but it does really help to
ensure that safety when it comes to consumers' funds. We
would love to see more competition in the market at
the end of the day, and more competition means more
options for Kiwis, whether that's new products or better pricing.
So we are definitely a big fan of competition, but

(03:42):
customer safety definitely has to come fir.

Speaker 2 (03:44):
Who do you target when you're looking for new customers?
Are you're looking for ones that are disgruntled with their
current setup or just people who are maybe looking to
get you know, they're looking just they're sort of shopping
around anyway.

Speaker 3 (03:56):
Yeah, Yeah, we've got a really good mix. So we
went live in July twenty twenty three and since then
we've grown from strengths to strength. We typically skew to
a younger audience just because of their different digital features,
but honestly we track if you're comfortable managing your payments
by your app, then is totally for you. And what

(04:17):
we've seen in New Zealand is we're actually attracting a
really wide range of ages and it's purely because we've
got so many different features compared to what exists in
the market already. And if you look globally, we've actually
just tipped over for Familion customers as well worldwide, so
we're definitely not pigeonholing ourselves into any one segment.

Speaker 2 (04:36):
Exciting times. Hey, George, thanks so much for your time
this morning.

Speaker 3 (04:39):
No, thank you, term good to chat.

Speaker 2 (04:42):
News talk, said B yes in nineteen minutes to eight.
I'll be interesting to see how they go actually and
what sort of reception they get from our retail banks.

Speaker 1 (04:51):
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