Australia’s first neobank Volt to shut deposit taking business, return licence

Australia’s initially neobank, Volt Financial institution Ltd, said on Wednesday it was shutting down its deposit taking enterprise, returning its banking licence and lowering team quantities following unsuccessful cash boosting initiatives.

The neobank, which in February had intended to raise A$200 million ($138.08 million), manufactured the conclusion just after it was unable to safe additional funding to guidance the organization, it said in a assertion.

Mortgage broking organization Australian Finance Group (AFG) last yr had secured about 8 per cent stake in Volt truly worth A$15 million, area media had described https://www.afr.com/street-converse/volt-lender-pitches-investors-for-200m-collection-f-boosting-20220201-p59suh in February. AFG did not immediately reply to a Reuters ask for for remark.

Volt claimed its had executed a transaction to market its mortgage portfolio and commenced the system of returning all deposits to clients in complete.

“Volt has taken methods to cut down all expenses and team quantities, other than individuals essential to help the orderly return of deposits and go after a realisation of the price of our remaining property,” it reported.

Australia’s prudential regulator in a independent assertion explained https://www.apra.gov.au/information-and-publications/apra-displays-volt-return-of-deposits it would closely observe the procedure to be certain funds are returned to Volt’s depositors.

($1 = 1.4484 Australian dollars)