Digital financial institution Volt is about to close down and has urged prospects to withdraw their funds inside per week.
The neobank has introduced it's closing its deposit-taking enterprise and plans to return its licence.
The financial institution was granted the licence in 2019 and was the primary start-up in Australia to be granted one by the Australian Prudential Regulation Authority (APRA) in a landmark determination by the monetary regulator.
Neobanks are a sort of financial institution that function solely on-line with out the standard in-person branches like different main banks.
"Volt has made the troublesome determination to shut its deposit taking enterprise and has commenced the method of returning all deposits to its account holders," the financial institution stated in an announcement.
"Prospects have to switch the balances held in all Volt accounts to a nominated checking account with one other monetary establishment earlier than the fifth of July 2022."
Rates of interest on all accounts have been set to zero and prospects have been urged to cease utilizing their accounts instantly.
Switch limits have additionally been elevated to $250,000.
The financial institution attributed the closure to the pandemic and the "present difficult world financial local weather" which means it has been unable to safe the funding wanted to remain operational.
It comes as different neobanks have additionally closed prior to now yr, together with Xinja, over the identical concern of failing to safe sufficient cash.
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APRA stated it would "carefully monitor" Volt's technique of returning cash to prospects.
"The Australian Prudential Regulation Authority (APRA) notes at the moment's announcement by Volt Financial institution Restricted (Volt) that it intends to return all funds to depositors and in the end relinquish its licence to function as an authorised deposit-taking establishment," APRA stated in an announcement.
"Volt's determination to exit the banking trade and pursue different enterprise alternatives is a business determination for Volt."