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The Australian Prudential Regulation Authority (APRA) announced on Monday that the out-of-service Australian Volt Bank has returned the deposits of all its clients.
Bolt, one of the first Australian neobanks, cited the funding issue behind the decision to shut down in late June. Since then, it has held A $ 107 million ($ 74 million) deposits from 5730 customers, all of which are now being remitted.
While the majority of Volt’s customers have begun remittances, Challenger Bank has voluntarily remitted the remaining 411 customers (total deposits: AU $ 113,073) to National Australia Bank (NAB).
“APRA closely monitored the deposit return process and formally approved the transfer of deposits to NAB using the authority under the Financial Sector (Transfer and Restructuring) Act of 1999 and the Banking Act of 1959,” APRA said. Stated.
Volt, along with three other Challenger banks, obtained an Australian banking license in 2019. Two, including Bolt, were out of service and one was acquired by NAB. The rest of judo suffers from record low stock prices.
Australian regulators made a lot of publicity about digital banking services when they started distributing licenses, but that didn’t work.
In the case of Volt, which was developing a “banking as a service” infrastructure to provide loans and deposits to its partners, the company was below revenue to fund capital-intensive technology.
We raised about A $ 85 million last year and asked for another A $ 200 million from the market in February last year, but now we can save our business.
In addition, Challenger Bank has fired 140 staff.
“Bolt will officially return the ADI license to APRA within the next few weeks,” APRA added.
The Australian Prudential Regulation Authority (APRA) announced on Monday that the out-of-service Australian Volt Bank has returned the deposits of all its clients.
Bolt, one of the first Australian neobanks, cited the funding issue behind the decision to shut down in late June. Since then, it has held A $ 107 million ($ 74 million) deposits from 5730 customers, all of which are now being remitted.
While the majority of Volt’s customers have begun remittances, Challenger Bank has voluntarily remitted the remaining 411 customers (total deposits: AU $ 113,073) to National Australia Bank (NAB).
“APRA closely monitored the deposit return process and formally approved the transfer of deposits to NAB using the authority under the Financial Sector (Transfer and Restructuring) Act of 1999 and the Banking Act of 1959,” APRA said. Stated.
Volt, along with three other Challenger banks, obtained an Australian banking license in 2019. Two, including Bolt, were out of service and one was acquired by NAB. The rest of judo suffers from record low stock prices.
Australian regulators made a lot of publicity about digital banking services when they started distributing licenses, but that didn’t work.
In the case of Volt, which was developing a “banking as a service” infrastructure to provide loans and deposits to its partners, the company was below revenue to fund capital-intensive technology.
We raised about A $ 85 million last year and asked for another A $ 200 million from the market in February last year, but now we can save our business.
In addition, Challenger Bank has fired 140 staff.
“Bolt will officially return the ADI license to APRA within the next few weeks,” APRA added.
