Volt Bank Explained

Volt Bank Limited
Type:Unlisted public company
Traded As:Volt Bank
Foundation:2017
Defunct:2022
Location:Sydney, Australia
Area Served:Worldwide
Num Employees:100[1]
Key People:Steve Weston (CEO)
Industry:Banking, Financial services

Volt Bank was an Australian consumer neobank, the first such bank to be issued with a restricted ADI licence by APRA.[2] [3] In June 2022, the bank announced it would permanently close its deposit-taking business and voluntarily return its banking licence, citing funding issues.[4]

Headquartered in Sydney, Australia, the bank was founded in 2017 and was granted a full licence to operate as an authorised deposit-taking institution (ADI) on 21 January 2019. Volt used BSB 517000.[5] [6] [7]

Business

Volt’s banking platform is located in the cloud using the Temenos T24 core banking, Financial Crime Mitigation and Analytics, Salesforce and Microsoft Azure.[8] [9]

Volt Bank also has industry partnerships with PayPal, Cotton On and Collection House.[10] [11] [12]

The bank publishes a mobile app, Volt Labs App, through which customers hold discussions and give feedback on the bank's products and services. The bank was planning to begin serving small businesses in 2020.[13]

History

The banking regulator, APRA, created the restricted ADI (RADI)[14] licensing framework to encourage new entrants and competition to the existing banking system.[15]

Volt Bank was issued with a RADI licence on 7 May 2018, the first organisation to obtain one under the new licensing framework.[16] [17] In doing so, it became the first completely new institution to be licensed as retail bank in the Australian market since Australian Bank in February 1981.[18] [19] [20]

On 29 June 2022, in an email to its customer base, Volt announced their intention to cease their deposit-taking business and return their banking licence, the second neo bank to do so, following Xinja. Accounts held with Volt will be closed on 5 July 2022.[4]

See also

External links

Notes and References

  1. Web site: Meet the Team . Volt Bank . 22 January 2019.
  2. News: Moullakis. Joyce. APRA grants first local digital licence to volt bank. 10 May 2018. AFR. 8 May 2018.
  3. News: Duran. Paulina. Australia grants first banking license to online startup. 11 May 2018. Reuters.
  4. Web site: 2022-06-09 . ROD - Home page - Volt Bank . 2022-06-28 . voltbank.com.au . en-US.
  5. Web site: McLean . Ben . APRA grants new authorised deposit-taking institution licence to volt bank . APRA . 22 January 2019.
  6. Web site: Yates . Clancy . Volt Bank first neo-bank to get full banking licence . SMH . 22 January 2019 . 22 January 2019.
  7. Web site: Banney . Alison . It's official: Volt Bank receives full banking licence, becoming Australia's first neobank . Finder.com.au . 22 January 2019 . 22 January 2019.
  8. Web site: Hastie . Eliot . Volt Bank goes live in record time . Investor Daily . 23 December 2018 . 22 January 2019.
  9. Web site: Henderson . James . How Australia's newest digital banks are expanding through Microsoft ISV Temenos . ARNNET . IDG . 22 January 2019.
  10. Web site: Volt Bank becomes first Australian company to sign a deal with Paypal in a bid to tackle customer frustration . Wholesale Investor . 9 October 2018 . 22 January 2019.
  11. Web site: Bajkowski . Julian . Digital bank Volt snares full ADI licence . ITNews . 22 January 2019.
  12. Web site: Barry . Elizabeth . Neobank Volt announces industry-first partnership with Cotton On. 24 February 2020 . finder.com . 25 February 2020.
  13. Web site: Volt Bank gets APRA green light. Eyers. James. 2019-01-22. Australian Financial Review. en. 2019-10-30.
  14. Web site: APRA finalises new Restricted ADI licensing framework. APRA. 11 May 2018.
  15. Web site: APRA consults on changes to authorising new entrants to banking industry. APRA. 11 May 2018. 11 May 2018. https://web.archive.org/web/20180511214733/http://www.apra.gov.au/MediaReleases/Pages/17_31.aspx. dead.
  16. News: Pash. Chris. Digital startup volt just got Australia's first restricted banking licence. https://web.archive.org/web/20180507070824/https://www.businessinsider.com.au/volt-bank-australia-first-restricted-banking-licence-2018-5. dead. 7 May 2018. 11 May 2018. Business Insider Australia. Business Insider Australia.
  17. Web site: APRA authorises Restricted ADI. APRA. 11 May 2018.
  18. Web site: SUBMISSION TO THE HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON FINANCE AND PUBLIC ADMINISTRATION. Reserve Bank of Australia. 12 May 2018.
  19. Submission to the Inquiry into the Australian Banking Industry Appendix 2: Australian Banks – 1980 to 1990. Reserve Bank of Australia. January 1991 . 12 May 2018.
  20. Web site: Ellerm . Jessica . Australia's neobank Volt goes live and competitor Xinja lands restricted licence . Daily Fintech . 2 January 2019 . 11 January 2019.

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