“The entire Volt team is deeply disappointed to have reached this point. We are hugely grateful to everyone who believed in what we were trying to achieve and worked tirelessly to make Volt a success.”
It comes after the closure of rival neo-bank Xinja in January last year, after not getting enough money, and the sale of 86,400 to NAB.
Volt said Wednesday it had executed a transaction to sell its mortgage portfolio and began returning all deposits to customers in full.
Analysts have been questioning the future of Australia’s new banks as challengers to traditional players after two of the four startups that received banking licenses were effectively out of the game. Credit: Louie Douvis
“The company has the liquidity to facilitate this process,” the statement said.
“APRA is closely monitoring the return of funds and all customer deposits that remain in Volt remain secure and are guaranteed by the government up to $ 250,000 per account holder under the Financial Claims Plan.”
Steps have been taken to reduce costs and the number of staff, other than those needed to support the return of deposits and pursue the realization of the value of the remaining assets, the company said.
APRA said Wednesday morning that Volt intends to return all funds to depositors and “ultimately relinquish its license to operate as an authorized deposit-taking institution.”
“Volt’s decision to exit the banking sector and seek other business opportunities is a business decision for Volt,” APRA said in a statement.
“As Australia’s financial security regulator, APRA will closely monitor the process to ensure that funds are returned to Volt depositors in an orderly and timely manner.”
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Analysts have been questioning the future of Australia’s new banks as challengers to traditional players after two of the four startups that received banking licenses were effectively out of the game.
Australia’s neobanking sector took off in 2019, when the Australian Prudential Regulatory Authority issued authorized licenses from deposit-taking institutions to start-up banks targeting the lucrative retail banking sector.
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