Neobank eyes issuing home loans

By Gerv Tacadena

The digital bank could launch its first mortgage product later this year

Volt Bank, one of the emerging neobanks in Australia, is planning to launch its first personal loan products, including home loans, this year.

The bank recently closed its Series C funding, amassing a total of $70m from investors. This brings the bank's total equity to $100m. Volt hopes to achieve another $50m in its next funding round before launching an IPO later this year.

"The fintech scene in Australia is growing extremely quickly right now. We've seen a number of large private capital raises and IPOs, and the neobanks are on track to grab a decent chunk of the big four banks' market share so there will be a lot of value created for investors," said Volt CEO and co-founder Steve Weston in a report in Business Insider Australia.

Volt Bank was one of the first digital banks to get a full license from the Australian Prudential Regulation Authority. Compared to its competitors in the market, however, it has only recently commenced rolling out savings accounts to its 40,000 would-be deposit holders in the waitlist.

Volt is planning to unveil its first loan products in June. There are also plans to launch home-loan offers in August or September.

Like most of its contemporaries, Volt also plans to take advantage of the broker channel to widen its share in the mortgage market.

More Mortgage News