Volt Bank was originally set to use IRESS’ MSO software to capture and assess mortgage applications, however the partnership ended when IRESS’s Australian mortgage software business discontinued operations in May 2020. Volt has instead decided to design and build its own mortgage process under a new partnership with Australian Mortgage Marketplace (AMM). The consumer neobank originally intended to launch its digital-only mortgages much earlier, however, COVID-19 led to a slowdown while the team reassessed the economy.
Volt is now progressing a USD 50 million initial proof-of-concept (PoC) with plans to initially use mortgage brokers to assist clients with enquiries before building its own direct mortgage solution. As the PoC is finalised, the next step will be an internal review plus approvals from regulators in readiness to ‘start accelerating lending’. At present the average traditional home loan process can take up to 27 days to provide unconditional approval. Volt’s process will compress this timeframe to 11.5 minutes.
Volt will also have its banking-as-a-service platform (BaaS) to separate itself from its competitors, which other lenders could potentially white label in the future. The digital bank already entered into a partnership with Railsbank earlier in 2021, which trades as Railspay in Australia. The partnership will allow Railsbank to expand its Asia Pacific footprint and use Volt’s BaaS platform and infrastructure to deliver products such as bank accounts, cards, and payment solutions to Australian customers.
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