Volt Bank partners with Microsoft to launch BaaS platform
Australian challenger bank Volt has signed a partnership deal with Microsoft for the deployment of a new Banking-as-a-Service (BaaS) platform.
The neobank claims its Volt 2.0 project will allow business partners to provide full-service banking and payments to their own clients. It will act as an extension of Volt’s existing partnership network.
Microsoft partner Lab3 has joined the development of the platform, due for launch in 2021.
Volt 2.0 will be based on the Azure cloud, the same environment as the bank’s core banking system, Temenos T24.
Volt says its new platform will support “multiple brands and diverse customer types”. It envisions retail partners offering banking services to their customers directly or through loyalty programmes.
The challenger also plans to target other banks as potential customers. It says Volt 2.0 could be used by incumbents to help them “accelerate the deployment of future banking services”.
Volt was the first of the Australian neobank to gain a full banking licence. It raised AUD 70 million ($50.5m) in a January funding round and planned an initial public offering (IPO) for later in 2020.
The neobank scrapped those plans in May as market conditions fluctuated during the height of the coronavirus pandemic.
Steve Wilson, CEO and founder of Volt, says his firm’s platform technology sets it apart from other challengers in Australia.
He adds that Microsoft “ticks all the boxes” from the perspective of scaling the bank.
“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.”
Microsoft’s managing director for Australia, says the deal is “unique” in the sector. He adds that it brings “the best” of Microsoft’s technology, engineering skills and “banking know-how” together.
“Volt 2.0 has the potential to radically reshape financial services in Australia and globally.”