Volt Electrifies Its Mortgage Solutions Through Acquisition

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  • Volt acquired the Australian Mortgage alternative lending platform.
  • The planned optimized mortgage offering could have a significant impact on Volt’s bottom line and help launch its future deposit products.
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On first purchase, Australian

neobank
Volt bought the Australian Mortgage alternative lending platform, formerly known as Australian Mortgage Marketplace, for an undisclosed amount, Mortgage Business reports

Banking stack

If Volt’s mortgage offers are supported, they could lead the company to profitability.

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Australian Mortgage technology offers “instant loan decision” that provides “fully verified approvals” in less than 15 minutes, neobank Mortgage Business reported. Volt says this compares favorably with approval times for large lenders, which can take more than 2 weeks, especially when clients are represented by brokers, according to a press release. quoted by Crowdfund Insider.

Neobank also plans to add an Intelligent Credit solution from Australian Mortgage.

Banking as a Service
(BaaS) “Volt 2.0” offer. The new digital mortgage offer will be rolled out through the Australian Financial Group. to deal with last month – starting with a pilot in Q4 2021 and becoming available to all AFG brokers in early 2022.

In the wake of the coronavirus pandemic that wreaked havoc on the Australian neobank market, Volt turned sharply to profit-seeking solutions.

From 2018 to early 2020, four promising

neobanks
had their own banking licenses and positioned themselves as an alternative to the country’s traditional operators. But the pandemic and the prevailing economic hurdles forced some applicants for lower interest rates on savings accounts, which they used as their primary incentive for clients. Ultimately, two Neobanks – 86,400 and Shinja – left the market through getting and by Shutdown, respectively.

Volt has survived with its thoughtful strategic BaaS and mortgage lending offerings: It partner with Microsoft and Lab3 to develop Volt 2.0 in September 2020, and partner Australian Mortgage in May for digital mortgages prior to acquisition.

If Volt’s mortgage offerings pick up steam, they could propel the company to a level of profitability, giving it the flexibility rarely found in new banks of its age.

Volt can use the speed of loan approval to generate interest in its mortgage solutions — both loans and Intelligent Credit. This revenue growth could, in turn, help flatten the path for Volt’s traditional deposit products – Volt is currently beta testing a savings product and its Web site indicates that a debit card proposal is in progress.

With its net profit, backed by revenues from BaaS and mortgage services, Volt was able to afford more generous terms on its deposit products and thus attract even more customers to its ecosystem.

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