Volt has become the first Australian digital bank to secure a full unrestricted banking licence in a move that allows it to more comprehensively challenge incumbents including the big four lenders.
The Australian Prudential Regulation Authority on Tuesday said it had granted Volt its licence to operate as an authorised deposit-taking institution (ADI) without restrictions.
Volt, co-founded by former St George executive Luke Bunbury and former Barclays head of mortgages Steve Weston, will now roll out savings and transaction accounts, term deposits, personal loans and home loans over 2019.
It is aiming to capitalise on consumer distrust of the big banks following the instances of misconduct aired at the financial services royal commission.
‘Against the backdrop of systematic failures and breaches of trust by incumbent banks, our mission is simple: to empower people and make financial services easier,’ Mr Weston said.
‘It’s about giving Australians a fundamentally different banking experience, one that is honest and fair.’
Volt has no branches but employs about 100 people, and is PayPal’s only Australian banking partner.
Volt, which has raised more than $45 million in equity including an $8.5 million investment from ASX-listed Collection House, also plans to offer small business banking next year.