Select a page

Banking News

Australia’s first digital only bank gets ‘restricted’ licence

Australia’s first digital only bank gets ‘restricted’ licence

(9 May 2018 – Australia) Volt Bank has been given Australia’s first new restricted banking licence as part of a government initiative to boost competition in banking.

The restricted licence allows start-up banks to operate under restricted conditions for a temporary period of time, before going through the tougher process of getting a full banking licence.

The plan to allow ‘restricted’ banking licences is similar to the model in the UK, where a series of digital “neo banks” have sprung up to challenge the established giants of the industry.

Volt bank will be digital only and is hoping to capitalise on the heightened mistrust around the big banks in the market brought about from the royal commission.

“Clearly trust [in the banks] is under enormous pressure and even if the trust isn’t broken it’s hanging by a thread,” said Volt co-founder Steve Weston. “But people are not willing to switch unless they believe the alternative is better for them and is easier to do… we need to be fundamentally different and better.”

Comment on this article

 

Your comments will not be published. Required fields are marked *

 

Please enter the word you see in the image below:


Subscribe

Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.