News: On first purchase, Australian neobank Volt snapped up an alternative lending platform Australian mortgages– formerly known as the Australian Mortgage Exchange – for an undisclosed amount, Mortgage Business reports…
Australian Mortgage technology offers “Instant Loan Decision” which provides “fully verified approvals” in less than 15 minutesThis was reported by the Mortgage Business Neobank. Volt claims this compares favorably with approval times for larger lenders, which may exceed 2 weeks– especially when clients are represented by brokers, according to the press release. quoted by Crowdfund Insider.
Neobank also plans to add an Australian mortgage loan. Intellectual loan Solution for Banking as a Service (BaaS) Volt 2.0. The new digital mortgage offer will be distributed through Australian financial group– which Volt cut off to deal with last month – starting with a pilot in Q4 2021 and becoming available to all AFG brokers in early 2022.
How we got here: 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 neobank start-ups had their own banking licenses and positioned themselves as an alternative to traditional players in the country. 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. As a result, two neobanks –86 400 as well as 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 as well as Lab3 develop Volt 2.0 in September 2020, and partner Australian Mortgage in May for digital mortgages prior to acquisition.
Big conclusion: 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.