Australia’s new digital bank gets full banking licence

The Australian Prudential Regulation Authority (APRA) said on Wednesday it has granted Volt Bank a licence to operate as an ADI under the Banking Act 1959.

It is the first new retail bank to be granted a banking licence in Australia since the early 2000s.

Volt was launched in late 2017 by Luke Bunbury and Steve Weston with the aim to help people change how they think, feel and act about money. It was previously licensed by APRA in May 2018 as a restricted ADI.

In a separate statement issued on its website, Volt Bank confirmed it is now a fully licensed bank.

"We’re incredibly pleased to announce that Volt Bank has just been granted an ADI licence by the Australian Prudential Regulation Authority; the first start-up digital bank in Australia to do so," Mr Weston said.

Volt Bank announced it will commence rolling out its products during 2019 and will continue over the next couple of years.

"We are committed to show that banking can be done in an easier and better way. We want to build a bank where customers are better off; a bank that works tirelessly for our customers and their money," Mr Weston added.

Digital banks are forecast to flourish in 2019, with Australia’s first crowdfunded bank Xinja and Cuscal-backed 86 400 both expecting to receive full APRA licences this year.

The tech-based lenders are hoping to capitalise on the Hayne royal commission into misconduct in the sector, and the resulting mistrust of banks.