The Australian Prudential Regulation Authority (APRA), the authority that oversees financial services industry in the country, has issued a new ‘restricted’ banking licence to a fintech company volt bank.

The new licensing will enable volt bank to conduct businesses under various restrictions for a limited period of time.

Initially, the bank is permitted to receive up to A$2m in deposits through its online platform. It can also maintain assets of up to A$100m.

Besides volt bank, the regulator has received several other applications from various companies under the new restricted licensing scheme, reported Reuters.

The introduction of the new banks is expected to enhance competition in the Australian financial services sector which is currently dominated by Commonwealth Bank, National Australia Bank (NAB), Australia and New Zealand Banking Group (ANZ) and Westpac Banking.

These four entities hold the maximum share of consumer deposits and credit loans in the country.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The news agency quoted volt chief executive Steve Weston as saying: “volt bank will show Australians how banking can be done in a simpler and better way.”

Recently, volt bank raised A$15.7m in equity to support its research and platform testing works.