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VoltBank Limited, an Australian digital bank, confirmed on Wednesday its decision to shrink its business from returning customer deposits and waiving bank licenses to soundness regulators.
As of April, online banks have approximately A $ 113 million ($ 78 million) in customer deposits and A $ 80 million in mortgages. In addition, banks sell mortgage books.
The operation of a digital bank failed because it could not raise enough funds to support its business. Last year it raised about A $ 85 million and in February last year it was looking for another A $ 200 million from the market.
Online banks have built a “banking as a service” infrastructure that allows them to offer loans and deposits to their partners. However, it required capital-intensive technology.
“Bolt has made a difficult decision to close its deposit-handling business and has begun the process of returning all deposits to account holders,” the bank said in an official statement. “Volt will begin closing accounts on July 5, 2022. Before that, please make sure you have withdrawn all your funds to leave a $ 0 balance in all your accounts.”
We also informed 140 staff that they are not currently working.
Digital Bank was licensed by the Australian Prudential Regulation Authority (APRA) in January 2019, when the Australian Government and regulators were heavily promoting a digital-only banking model.
In addition, Volt was one of Australia’s first four digital banks to obtain an APRA license. One of them, Xinja, has also ceased service and the 86400 has been acquired by the National Australia Bank. Now, the closure of Bolt only leaves Judo, and Judo suffers from record low stock prices.
“Bolt is doing everything possible to return deposits in an orderly and timely manner. The Australian Health Regulatory Authority (APRA) is closely monitoring this process. In addition to this, deposits Is protected under the Australian Government’s financial billing scheme and guarantees deposits of up to $ 250,000 per account holder, “Volt wrote.
VoltBank Limited, an Australian digital bank, confirmed on Wednesday its decision to shrink its business from returning customer deposits and waiving bank licenses to soundness regulators.
As of April, Neobank holds approximately A $ 113 million ($ 78 million) in customer deposits and A $ 80 million in mortgages. In addition, banks sell mortgage books.
The operation of a digital bank failed because it could not raise enough funds to support its business. Last year it raised about A $ 85 million and in February last year it was looking for another A $ 200 million from the market.
Online banks have built a “banking as a service” infrastructure that allows them to offer loans and deposits to their partners. However, it required capital-intensive technology.
“Bolt has made a difficult decision to close its deposit-handling business and has begun the process of returning all deposits to account holders,” the bank said in an official statement. “Volt will begin closing accounts on July 5, 2022. Before that, please make sure you have withdrawn all your funds to leave a $ 0 balance in all your accounts.”
We also informed 140 staff that they are not currently working.
Digital Bank was licensed by the Australian Prudential Regulation Authority (APRA) in January 2019, when the Australian Government and regulators were heavily promoting a digital-only banking model.
In addition, Volt was one of Australia’s first four digital banks to obtain an APRA license. One of them, Xinja, has also ceased service and the 86400 has been acquired by the National Australia Bank. Now, the closure of Bolt only leaves Judo, and Judo suffers from record low stock prices.
“Bolt is doing everything possible to return deposits in an orderly and timely manner. The Australian Health Regulatory Authority (APRA) is closely monitoring this process. In addition to this, deposits Is protected under the Australian Government’s financial billing scheme and guarantees deposits of up to $ 250,000 per account holder, “Volt wrote.
