Digital-only volt bank granted restricted licence
The Australian Prudential and Regulation Authority (APRA) has granted a restricted authorised deposit-taking institution (RADI) licence to volt bank, a digital-only bank.
With no legacy systems or physical branches, volt is the first new retail-focused bank to receive such a license since the early noughties.
“volt bank will show Australians how banking can be done in a simpler and better way,” the bank’s chief executive, Steve Weston said.
“We acknowledge we are at the start of our journey, but the trust between many Australians and their banks has been broken and the path to repair starts with new market entrants who are willing to do things differently,” he said.
Under the RADI, volt has restrictions on the amount of deposits it can take while it builds its resources and capabilities.
Subject to a transition to a full ADI licence, volt said savings accounts, transaction accounts, term deposits and foreign exchange will be the first products it will make available to customers.
This will be followed by personal loans, mortgages, credit cards, and in the longer term, small business banking products, it said.
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