Australia’s first digital only bank Volt today announced a strategic partnership with Microsoft to develop “Volt 2.0”, a white labelled Banking as a Service platform for non-banks.
In 2019 Volt was the first Australian challenger bank to receive a banking licence and had been focused on the consumer market. But Volt is yet to progress its consumer products beyond a beta stage for waitlist clients, with a public launch still “pending”.
Volt will continue to offer consumer products but Which-50 understands the bank sees the platform and services market as too lucrative to ignore.
In a media statement released today, the bank says a partnership with Microsoft will allow it to also develop a scalable BaaS platform based on Microsoft Azure services. The new platform is expected to be released in 2021.
“Volt 2.0 will securely support multiple brands and diverse customer types, and deliver unique and valued customer experiences, and allow white-label banking where retailers could offer financial services to customers directly or via their existing loyalty programs,” the statement says.
Volt 2.0 will also be available to incumbent banks for deploying additional banking services.
Cloud services company LAB3 will also work on developing the platform.
Steve Weston, CEO and founder, Volt, says Microsoft giant “ticks all the boxes” for scaling the platform.
“Volt 2.0 will need to have the capability to adapt to the changing market and the evolving needs of our customers and partners, as well as the evolving technologies available in the market. We work with strategic partners that are continuously innovating their products and services, so our industrial-grade banking platform is always cutting-edge.”
Steven Worrall, managing director, Microsoft Australia said the Volt partnership is unique in the Australian neobank sector.
“Volt 2.0 has the potential to radically reshape financial services in Australia and globally. Microsoft Azure has been designed with resilience, scalability, security and trust front and centre, making it the natural platform for this sort of mission-critical and transformative application.”