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Australian lender Volt collapses in blow to ‘neobank’ experiment

Financial Times LogoFinancial Times1 mo ago

Australian lender Volt collapses in blow to ‘neobank’ experiment

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But in 2018, the Australian Prudential Regulation Authority introduced “restricted” licences for neobanks that subjected them to less onerous requirements during the first two years of trading.

These so-called neobanks were subject to less onerous standards and expected to challenge incumbents, yet all but one, Judo Bank, has collapsed or been taken over.

The lender, which was Australia’s first online-only bank to receive a licence, said it had liquidity to fund the return of deposits without having to resort to the government’s deposit guarantee scheme, which protects savings up to A$250,000.


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Article Details

Author / Journalist: James Fernyhough

Category: MarketsFinanceInvesting

Topics: Capital Raising Bank Four Banks Volt Sector Been Banking Neobanks

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-29, 07:19:13

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 4 minutes read

Article Length: 627 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 19852

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About Financial Times

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Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 15 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 14h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

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Publisher ID: #3

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