Volt Bank finalises the return of customer deposits

  • By Zilla Efrat

The Australian Prudential Regulation Authority (APRA) has confirmed that Volt Bank has returned deposits to its customers. 

The return of deposits began on 29 June when Volt announced that it would cease to be a bank and would hand back its authorised deposit-taking institution licence to APRA after failing to secure enough additional funds via a capital raising to support its plans to write mortgages.

At the time, 5,730 customers held deposit accounts with Volt with a total value of $107 million.

According to Volt, APRA has closely monitored the return of deposits process, which saw all but a small percentage of Volt Bank deposits transferred to other banking institutions.

Volt has now transferred the remaining 441 accounts, with a total deposit value of $113,073, to the NAB. The customers owning these accounts will shortly receive correspondence regarding the next steps in the transfer of deposits process and how to contact NAB for assistance.

In a statement on its website, Volt says APRA closely monitored the return of deposits process, and formally approved the transfer of deposits to NAB using its powers under the Financial Sector (Transfer and Restructure) Act 1999 and Banking Act 1959. Volt will hand back its ADI licence formally to APRA in the next few weeks.

Volt was the first online bank to gain an Australian banking licence.