29th June 2022
Volt Bank Limited (Volt) today confirmed that it has notified the Australian Prudential Regulation Authority (APRA) of its intention to close its deposit-taking business, return all deposits to its customers and return its banking licence
The decision has been taken by the Volt Board having reviewed recent progress in capital raising initiatives globally which have been unsuccessful in raising sufficient additional funds to support the business.
Volt CEO Steve Weston said: “In reaching this difficult decision we have considered all options but ultimately, we have made this call in the best interest of our customers.”
Volt has executed a transaction to sell its mortgage portfolio and begun the process of returning all deposits to customers in full. The company has the necessary liquidity available at hand to facilitate this process.
APRA is closely monitoring the return of funds and all customer deposits held with Volt remain safe and are guaranteed by the government up to $250,000 per account holder under the Financial Claims Scheme.
Volt has taken steps to reduce all expenses and staff numbers, other than those required to support the orderly return of deposits and pursue a realisation of the value of our remaining assets.
Volt would like to take this opportunity to thank the customers, team members and investors who supported the business from its inception.
Mr Weston said: “The entire Volt team is deeply disappointed to have reached this point. We are enormously grateful to everyone who believed in what we were trying to achieve and worked tirelessly to make Volt a success.”