Volt enters strategic alliance with AFG; appoints Graham Bradley AM as Chair; extends Series E to $8
Volt and AFG Forge Landmark Strategic Alliance
Sydney, 2 June 2021: Australia’s first neobank Volt has announced a landmark strategic alliance and a $15 million investment from one of Australia’s largest mortgage aggregators, Australian Finance Group Ltd (ASX:AFG).
The alliance will leverage Volt’s banking as a service (BaaS) offering, by providing digital white labelled mortgage products to AFG’s network of more than 2,975 brokers. Volt and AFG will work together to develop and distribute further Volt white label products to AFG brokers in the future, including personal and business loans.
The strategic alliance will also deliver AFG a white label personal finance manager (PFM) app powered by Volt. The app will help AFG’s customers better manage their finances and, in the future, allow AFG brokers to provide a more efficient home loan application process for borrowers.
The entry into the strategic alliance and investment by AFG is expected to complete after satisfaction of a number of conditions (with the $15 million investment held in escrow until the satisfaction of the conditions).
Once the conditions are satisfied, the white label Volt-funded digital mortgage product and AFG branded PFM app is expected to be piloted in the last quarter of CY2021 and be made available to AFG brokers in the first quarter of CY2022.
Volt Founder and CEO, Steve Weston, said: “Volt is thrilled to partner with AFG to bring a digital mortgage and other financial services products to Australian consumers at scale. AFG is a pioneer of the mortgage broking industry and touches one in every eleven home loans written in Australia. Its endorsement of Volt’s digital offering, through this strategic alliance and equity investment, is a landmark moment for our company.
“Volt has distinguished itself by pursuing unique banking as a service strategy and the partnership with AFG is testament to the demand for integrated and white-label banking to help businesses deepen relationships with their customers.
“The management of financial services is no longer the domain of a handful of large institutions. Volt wants to facilitate a future where a range of businesses, large and small, can deepen their customer relationships through Volt’s BaaS offering,” concluded Mr Weston.
AFG CEO, David Bailey, said: “This alliance will deliver significant value to both companies as we combine Volt’s technology with AFG’s vast distribution footprint to deliver competitive products to the market and streamlined digital solutions for brokers and their customers. The combination of innovative lending and financial management technology, via Volt’s digital bank offering and AFG’s distribution, is compelling.”
The total capital allotted in Volt’s Series E raise to date is $37.7 million. Volt has extended the Series E to $85 million.
Graham Bradley AM appointed Volt Chair
In addition to the strategic alliance and raise, the former chair of HSBC Bank Australia, Graham Bradley AM, will join the Volt board as chair in June, subject to regulatory approval. Volt’s current chair, John Masters, will become deputy chair and chair of the Audit Committee.
Mr Bradley brings significant professional experience and skills to the Volt board having chaired numerous ASX-listed companies, including Stockland, GrainCorp, EnergyAustralia, Virgin Australia International Holdings, and Infrastructure NSW. Mr Bradley was also managing director of Perpetual Limited from 1996 to 2003 and chaired HSBC Bank Australia from 2004 to 2020.
Speaking of the appointment, Mr Bradley said: “I am excited by the opportunities that lie ahead for Volt and am delighted to join the team that will shape the company’s future strategic direction. The Volt team has successfully navigated the COVID disruptions of 2020 with their banking as a service strategy intact. With the new strategic partnership with AFG and additional capital funding, Volt is well-positioned to scale up quickly to provide highly efficient and competitive financial services to the Australian market.”
Welcoming Mr Bradley, Mr Weston said: “Graham is one of the country’s most experienced company directors and brings a wealth of knowledge to Volt. He is eager to be part of the future of banking and will be fundamental in driving Volt’s ambitions.”
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Note: Please contact Erika Streegan for any interview requests: 0401 788 399.
About Volt Bank
Volt is Australia’s first neobank, on a mission to create much-needed competition in the Australian banking industry. Volt is live and has over 8,000 customers with more than $88m in deposits. It has already commenced testing its mortgage loan products and plans to launch more broadly to the public in the coming months.
Volt is a market leader in Australia, implementing a BaaS platform and partnership strategy, Deposits with Volt of up to $250,000 per customer are covered by the Government’s Financial Claims Scheme.
