Why did APRA revoke in1Bank’s banking licence?

The Australian Prudential Regulation Authority (APRA) revoked in1Bank’s authorised deposit-taking institution (ADI) licence following the bank's decision to exit the market.

Did in1Bank attempt to save its banking licence?

Yes, the digital player proposed a last-minute recapitalisation plan in recent weeks to bolster its financial position and maintain its status. However, APRA proceeded with the revocation regardless of this proposal, effectively ending in1Bank's ability to operate as a regulated bank in Australia.

What happened to customer funds held at in1Bank?

All customer deposits were returned in full by March, prior to the formal revocation of the licence. Because the bank had already offboarded its deposit base, there was no immediate risk to retail capital at the time of APRA’s announcement on Monday.

Which companies remain in the Australian digital "neobank" sector?

The exit of in1Bank leaves a very limited number of start-up banks in the Australian market. Key remaining players include Alex Bank, which focuses on personal loans, and Avenue Bank, which specialises in cash-backed bank guarantees for businesses.

Is the Australian digital banking sector becoming more or less competitive?

The sector is becoming significantly less competitive as the "neobank" era thins out due to regulatory and capital pressures. With in1Bank’s exit, the market has shifted from a broad range of digital challengers to a few niche players catering to specific lending or guarantee segments.

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APRA revokes in1Bank licence following deposit return

Written by Heidi Cuthbert Published May 4, 2026, 1:28 AM

The Australian Prudential Regulation Authority has revoked the authorised deposit-taking institution licence of in1Bank.

The regulator’s decision follows the bank's return of all customer deposits in March.

Despite the digital player proposing a last-minute recapitalisation plan to bolster its position, APRA proceeded with the revocation under the Banking Act.

The exit further thins the ranks of Australian start-up banks, leaving only a handful of niche players—such as the personal loan specialist Alex Bank and the guarantee-focussed Avenue Bank—remaining in the competitive market.