Monday, 20 January 2020 10:12

Volt Bank closes ‘oversubscribed’ $70 million funding round Featured

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Branchless digital bank Volt Bank has closed a $70 million Series C equity funding round, which was oversubscribed by $10 million beyond the original target of $60 million.

Volt - the first Australian neobank to receive an unrestricted banking license (ADI) early in 2019 - says this latest funding round brings total funding raised to $100 million in equity and brings it closer to a planned listing on the Australian Stock Exchange later this year, subject to market conditions.

And Volt says that “due in large part to the regulatory capital demands of a bank”, it is kicking off a Series D equity funding round, with the focus on investors in the UK and the Middle East, “to add to existing interest from Australia, Hong Kong, and Singapore”.

According to Volt, capital raised to date has been deployed in building digital infrastructure, recruiting a team of global digital, data and banking experts, and developing the company’s platform-based banking model.

Volt recently launched its first deposit product and says it aims to have a full range of consumer deposit and loan products in the market by the end of 2020, before entering the small and medium enterprise (SME) space in 2021.

“The high levels of interest we are receiving from potential banking partners validates our platform-based business model and the neobanking sector as a whole,” said Steve Weston, CEO & Co-Founder of Volt Bank.

"The Series D funding round will boost Volt’s regulatory capital reserve and provide funding for the rollout of additional products. Our first deposit product clearly differentiates Volt from incumbent banks. It is an account that helps customers save and provides a very competitive interest rate without the limited time bonus period restrictions or the need to meet other bonus conditions like most savings accounts in Australia.

"Key to our ultimate global scale is the development of our platform strategy. We are now raising more capital to invest in the development, integration and onboarding of partners that will open up new customer bases with both Volt-branded and white-labeled banking products.”

As reported by iTWire, last December Volt Bank said it had started “onboarding” a selection of early-adopter customers from its 40,000 waitlist, while announcing a ‘no catches’ ongoing base interest rate of 2.15 per cent on savings.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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