AAP Finance

Volt Bank raises $70m as it nears launch

By AAP Newswire

Challenger bank Volt Bank has completed a $70 million equity funding from institutional investors, bringing its total raising to $100 million in equity.

Volt chief executive and co-founder Steve Weston said the digital bank is planning to open to the general public in late February and will use the money as regulatory capital to support its mortgages, personal and business loans.

Volt is planning another equity funding round focused on investors in the United Kingdom and the Middle East, and is looking to list on the ASX late this year.

"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," Mr Weston said.

Along with '86 400' and Xinja, Volt is one of several "neobanks" that are hoping to shake up Australia's financial sector.

When it received a restricted banking licence in 2018, Volt became the first new institutional licensed as a retail bank in Australia since 1981.

Volt currently has 160 staff out of its North Sydney office, and plans to expand that to over 200 this year.

Volt says it is "in beta" and working its way through a 44,000-strong customer waitlist as it works to get out any kinks in its systems before throwing its doors open to the public.