Volt Bank returns deposits to customers after announced closure

The bank struggled to raise enough funds to sustain its business.

Australia’s first neobank has completed returning more than $73.86m deposits to its customer, The Australian Prudential Regulation Authority said.

The return of deposits began on 29 June when Volt announced its decision to cease being a bank and hand back its authorised deposit-taking institution (ADI) licence to APRA. The neobank struggled to raise enough funds to sustain its business causing its shutdown.

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Volt has now completed the process by voluntarily transferring the remaining 441 accounts, with a total deposit value of $78k, to the National Australia Bank (NAB). 

“APRA closely monitored the return of deposits process, and formally approved the transfer of deposits to NAB using its powers under the Financial Sector (Transfer and Restructure) Act 1999 and Banking Act 1959. Volt will hand back its ADI licence formally to APRA in the next few weeks.” APRA said.