Australian neobank Volt, a challenger in the financial technology sector, has been forced to close and return its banking license after failing to secure the necessary capital to scale its operations. The company, which had around 6,000 customers, is now urging them to withdraw their funds as it winds down. This shutdown, announced in late June 2022, follows a similar fate for other Australian neobanks like Xinja, highlighting the significant capital-raising challenges faced by new entrants trying to compete with the country's established banking oligopoly. Volt's CEO cited tough global economic conditions and an immature local venture capital landscape as key reasons for its inability to continue.
