Withdraw your money now – says Australian digital bank Volt as it closes

A digital bank in Australia failed, costing 140 employees their jobs and forcing 6,000 customers to rush to withdraw their money by next week.

After failing to raise enough money to remain viable, Volt Bank said on Wednesday it was shutting down depository operations and surrendering its banking license.

According to the neobank’s website, “Volt has made the difficult choice to end its deposit collection operation and has begun the process of refunding all deposits to its account holders.”

“Customers must transfer balances held in all Volt Accounts to a designated bank account at another financial institution by July 5, 2022.”

Volt CEO Steve Weston said the company’s collapse was a “very sad day” when the bank was first introduced in 2017.

“As a team, we have created something that Australia really needs to create financial competition in the market.” According to him, Australia today lacks the technology and capacity that we have.

But to transport that to a public launch, we need automotive fuel, and to buy fuel, we need money. And in today’s market, raising the amount of money we needed to scale was a challenge we weren’t able to meet.

The bank was launched in 2017 with Volt chief executive Steve Weston (right) saying the company's closure was a Customer transfer caps have been raised to $250,000 and users are urged to stop using their accounts now.

Volt has deposits totaling over $100 million.

As a bank, Mr Weston said his business needed a lot more capital than others, but it was a challenge ‘we couldn’t overcome’.

Since February, the company had hoped to raise $200 million, but problems with the Covid outbreak had significantly hampered its efforts.

Fund deposits are monitored by APRA, the Australian Prudential Regulation Authority.

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