Collection House acquires $8.5m stake in Volt Bank
A pathway set up by regulators to incentivise new entrants in the banking sector is starting to gather momentum, with Volt Bank receiving an $8.5 million investment from listed company Collection House (ASX: CLH).
The Australian Prudential Regulation Authority (APRA) yesterday granted Volt a licence to operate as an authorised deposit-taking institution (ADI) without restrictions, as part of a framework set up in May 2018 to assist small firms with limited financial resources.
At the time, APRA chairman Wayne Byrnes said making it easier for aspiring ADIs to enter the market would help enhance competition and potentially innovate new business models, while the scheme would also maintain safety and stability in the financial system.
Volt has so far raised more than $45 million in Tier 1 capital from four funding rounds, and is the first completely new start-up entity to be licensed as a retail bank in Australia since 1981.
The bank playfully lists its founders as Steve Weston, Luke Bunbury and a dog called Lucy.
Volt has had a strategic alliance with Collection House since November 2018, with plans to roll out new products and services to the companies’ respective customers this year. CLH’s investment gives it a 4.5 per cent stake in the group.
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