Australia’s first neobank to receive an unrestricted ADI licence has begun onboarding sections of its 40,000-strong waitlist ahead of its public launch planned for early 2020 – and it’s planning to do things very differently than traditional institutions.
Volt Bank’s ‘no catches’ interest rate on savings will not be subject to an introductory period, or conditions that lead to many consumers not actually receiving a higher rate, like minimum monthly deposits or a minimum number of card transactions.
To CEO & co-founder Steve Weston, it doesn’t make sense that new customers often get a better deal than loyal ones. He feels banks should say what percentage of their home loan and savings account customers get interest rates that are higher or lower than the advertised base rates.
“I began my banking career over 30 years ago, and from day one I fell in love with helping people solve their financial challenges,” he explained.
“What I find troubling is banks saying they are putting customers at the heart of what they do, but that isn’t reflected in actual practice.
“Banking needs to be done in a better way. Volt’s first product, our savings account, offers a highly competitive rate without any conditions. I challenge other banks to do the same,” Weston said.
The account will have an ongoing base interest rate of 2.15%.
“This rate strongly aligns with our mission of developing financially healthy and happy humans, who are masters of their own money. This means providing financial products that are free from any catches or unpleasant surprises, and which actually help consumers develop great financial habits.
“We are taking our time to build every product and feature in a prudent fashion, including by seeking feedback through our co-creation app, Volt Labs. When we launch to the public in 2020, Volt will be a viable, well-understood, and trusted option for everyday Australians."
