Following its failure to secure capital from investors, Neobank Volt is closing operations and relinquishing its banking licence.
On its website on Wednesday, one of Australia’s earliest neobanks said that it had been “unable to acquire the necessary funds to carry on.
We regret to inform you that Volt will be discontinuing its deposit-taking operations and returning its banking licence “announced the neobank.
“At this time, our top goal is making sure that account holders receive their monies as soon as possible.”
All customers are being urged by the Neobank to “stop using their accounts immediately” and withdraw their funds by July 5.
We are incredibly appreciative of everyone who supported our goals and gave their all to make Volt a success, he said.
Volt was the first neobank in Australia to be granted an unrestricted Authorised Deposit-Taking Institution (ADI) licence in 2019.
The development of a new banking-as-a-service (BaaS) platform to provide white-labeled goods out of Volt’s own banking system was announced by Volt and fintech Frollo in November 2021.
Additionally, it collaborated closely with the money management platform Parpera and Railsbank, doing business in Australia as Railspay, to get access to the embedded finance elements of Railspay so that it could introduce a BaaS offering.
Volt was shut down after neobank Xinja, which shuts in 2020