Volt is an Australian neobank service committed to helping customers save money when applying for a loan or taking on debt, without all the hidden fees and tricks of traditional banks. They have recently announced that they will be joining forces with UK based fintech Railsbank, which is designed to help make financial services more accessible by making global banking easier and all in one place. Volt has decided to do this partnership with Railsbank in an effort to launch its embedded financing services to the Australian market and to hopefully spark growth for the company, as it has been recently tough the last few months in the sector. To do this, Railsbank plans to use Volt’s “Banking-as-a-Service” platform to offer customers a seamless system of bank accounts, credit and credit card information, and payment options. In order to tackle Volt’s issue of its rough past few months, it will have access to Railsbank’s network of customers and clients to give itself a much broader customer demographic. Railsbank seems to be doing well and has garnered much interest from both customers and investors alike, as they have reported close to €40 million from investors from financial services giants such as MasterCard and Visa.
Railsbank CEO for the Asian Pacific market Justin Xiao recognizes the strength of not just Volt, but the entire Australian fintech industry as a whole, and sees this as a strong mutually beneficial partnership. Xiao stated that “Australia’s fintech is thriving” in an interview and went on to add that it is “a real privilege” to work with Volt going forward in their future endeavors. “Collaborating with Volt gives us access to local knowledge and capabilities to help us succeed.” This isn’t going to be all smooth sailing though, because as mentioned previously, not just Volt but the entire neobank industry has hit a bit of a rough patch towards the end of last year and is still in the process of recovering fully from that. Xinja, which was one of the first and largest neobanks in the industry, announced they would be exiting the sector as of late, and 86 400 was acquired by NAB to assist in their digital service UBank. This only leaves Volt and fellow competitor Judo left in the game, so the partnership with Railsbank should really work well in their favor of turning the tide of the neobank sector. Volt has stated that they do believe this partnership, as well as how they choose to enter the market, could mean long term success for the company.