BREAKING: Volt Bank will hand back deposits to customers and return its banking license, marking another failure in the neobank experiment.
Neo-bank Volt Bank will return over $100 million in deposits to customers and hand back its banking license to the prudential regulator, marking another unsuccessful attempt by a startup to break into the Australian banking market.
“In reaching this difficult decision we have considered all options but ultimately, we have made this call in the best interest of our customers,” Volt CEO Steve Weston said.According to April’s Australian Prudential Regulatory Authority statistics, Volt Bank had $113 million of deposits. That number is said to now be around $106 million held by 6,000 customers.
Volt said APRA was “closely monitoring the return of funds and all customer deposits held with Volt remain safe and are guaranteed by the government up to $250,000 per account holder under the Financial Claims Scheme.”
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