Volt says that focusing on smartphones will ensure an easy experience for customers.Credit:Shutterstock
Until now,Volt,like other"neo-banks,"had been limited by the fact itonly held a "restricted" licence. This meant it could accept no more than $250,000 in a single deposit,and a maximum of $2 million in total deposits,and effectively ensured the bank was in test mode.
APRA's granting of a full licence is a critical milestone,because it will allow the branchless Volt to push ahead with plans to roll out savings and transactions accounts,term deposits,personal loans,and home loans this year.
Other start-up banks that are seeking an unrestricted banking licence from APRA soon include Xinja,and Cuscal-backed 86 400,which is seeking to bring on new investors this year.
Co-founder and chief executive Steve Weston said the fact Volt was digital-only and focused on smart phones would allow it to remove"speed bumps"experienced by customers,pointing to waiting times and fees.
Volt Bank chief executive Steve Weston said it would offer customers a "fundamentally different" banking experience.Credit:Christopher Pearce
“Against the backdrop of systematic failures and breaches of trust by incumbent banks,our mission is simple;to empower people and make financial services easier. It’s about giving Australians a fundamentally different banking experience,one that is honest and fair,” said Mr Weston,a former head of mortgages at Barclays.
Treasurer Josh Frydenberg said the launch showed the government's bid to boost competition in banking - which included steps to make it easier to start a bank - was working.