In a bold and timely expansion, the global fintech juggernaut Revolut is advancing its plans to establish a fully licensed bank in South Africa. The company has officially submitted a Section 12 application to the Prudential Authority of the South African Reserve Bank — a crucial step under the Banks Act.
Simultaneously, Revolut has named Dr Gaby Magomola, the former CEO of African Bank, as the incoming Chairman of Revolut South Africa. This appointment is set to take effect in January 2026, coinciding with Revolut’s local banking ambitions.
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A Seasoned Leader with Deep Roots in South African Banking
Dr Magomola is no stranger to South Africa’s financial system. With a career spanning four decades, he has held senior roles at Citibank, Barclays, First National Bank, and, more recently, as the CEO of African Bank, as reported by Business Explainer. He also served as Deputy Chairman of the Development Bank of Southern Africa, contributing to its Audit, Risk, and Nominations Committees.
His reputation goes beyond just executive leadership — Magomola is celebrated for his commitment to inclusion and ethical governance. He has been honoured with an honorary doctorate in commerce and economics from the University of Zululand and has received the University of South Africa Chancellor’s Award, among other accolades.
Revolut’s CEO in South Africa, Jacques Meyer, praised the decision as “pivotal,” noting that Magomola’s understanding of the regulatory landscape will be critical as the company navigates local compliance and designs a customer-centric offering.
What This Means for Revolut’s South African Ambition
By appointing a respected figure like Dr Magomola, Revolut is signalling seriousness about its long-term commitment to South Africa — not just as a testing ground, but as a core battleground for its global banking aspirations.
This move aligns with its Section 12 application: once approved, it could transform Revolut from being a payments-focused fintech into a fully licensed local bank, offering a broader suite of banking products tailored for South African consumers.
Although details of the planned product range haven’t been fully disclosed, Revolut has hinted at building services that reflect local needs — ranging from digital wallets to full-scale banking operations, depending on regulatory outcomes.
Wider Implications for the Fintech and Banking Landscape
Revolut’s entry into South Africa could shake up the financial services space. It brings a well-known global brand into competition with both traditional banks and existing digital challengers.
For customers, this could mean more choice, potentially lower costs, and more innovation — particularly for underserved segments. Dr Magomola himself underscored this mission, emphasising the goal of “championing greater financial access and innovation for everyone across the country.”
On the regulatory side, Revolut must navigate the Prudential Authority’s demands carefully. But with Magomola’s deep experience, the company may have a significant advantage in shaping a sustainable, locally relevant banking model.
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