Volt, the Australia-based digital bank backed by receivables manager Collection House, has secured A$70m ($48.1m) in funding from undisclosed investors at a $196m valuation, the Sydney Morning Herald has reported.
Founded in 2017, Volt offers an app-based savings account with an interest rate of 2.15% per annum and no fees. It launched the service last month and is currently operating in beta.
Collection House invested approximately $6m in Volt in January 2019, shortly after it had received approval from the Australian Prudential Regulation Authority to operate as a deposit-taking institution.
The company has now raised approximately $69m in total, according to SMH. It has almost 300 investors which include members of its management team, several individuals and an undisclosed domestic fund manager.
Steve Weston, co-founder and CEO of Volt, told SMH the funding will go to meeting regulatory capital requirements as it looks to expand the app into other financial services areas.
Volt will not issue credit cards but intends to add a cash management account option next month and a transaction account in May this year before introducing personal loans the following month.
