Volt Bank became Australia’s first fully licensed digital neobank in 2019, and Steve Weston sits behind that milestone. He’d spent years running mortgage divisions at global banks before deciding to build one from scratch.
A 2017 budget speech announced fresh banking competition rules, and Weston started sketching a plan that same night. Volt Bank launched soon after, built on the idea that a bank didn’t need branches to earn trust.
In this article, we’ll cover how Weston secured Volt’s banking licence, raised capital, and built partnerships that kept it running. It’s a story that captures the entrepreneurial spirit of Aussie businesses chasing disruption. Read on to see how it all unfolded.
Who Is Steve Weston? Meet Volt Bank’s Founder
Steve Weston is the banking executive who co-founded and led Volt Bank, Australia’s first licensed neobank. He grew up in North Queensland and fell into finance after a week of work experience at a local branch. Later, he admitted he only took the placement because the office had air conditioning.
That accidental start led to a career spanning some of the biggest names in banking, long before Volt existed. Weston is one of many Australian Entrepreneurs who left a stable corporate role to chase something riskier.
He served as Volt’s chief executive from its founding in 2017 until the bank handed back its licence in 2022. Five years at the helm gave him a front-row seat to both the highs and the eventual collapse of Australia’s neobank experiment.
Steve Weston’s Career Before Volt Bank
Long before Volt existed, Weston spent years climbing the ranks inside some of the world’s biggest banks (a resume most bankers would envy).
Here’s a quick look at his path to the top:
- Joined Barclays in London in 2012 as managing director of retail lending.
- Became chief executive of Barclays’ mortgage business by 2014.
- Held senior roles at Challenger Life and National Australia Bank earlier.
- Spent time at St.George Bank before moving into the UK market.
That run through four major institutions gave Weston a rare view of how both Australian and UK banks operate. It’s the kind of background that later convinced investors he could pull off something as ambitious as Volt.
At Barclays, Weston managed a retail lending book worth billions of pounds. He dealt directly with regulatory pressure after the 2008 financial crisis. That experience taught him how slowly big banks move when it comes to adopting new technology.
He returned to Australia in 2016 after almost four years in London. Within a week of settling back in Sydney, he started scouting opportunities in the local fintech space. His timing lined up almost perfectly with the government’s push to open up banking competition the following year.
Why Did Steve Weston Start Volt Bank?
Starting Volt meant Weston could finally build a bank the way he’d always wanted, without branches slowing things down. He watched the 2017 budget speech live. It was the only one he’d ever tuned into in real time, and it announced new measures to boost banking competition.
That same night, Weston couldn’t sleep. He filled a notebook with a rough business plan, working through how a digital-only bank might actually compete with the majors. Within 48 hours, he’d teamed up with co-founder Luke Bunbury, a former Citi executive, and the two started a feasibility study together.
Volt officially got moving in mid-2017, based in Sydney and built from day one around the idea of ditching physical branches entirely. The timing worked in Weston’s favour. Australia’s banking sector hadn’t seen a genuine new entrant in decades, and the government had just opened the door for one.
Volt Bank’s Banking Licence: How It Became a Real Bank Like Major Banks
Volt earned its status as a real bank in two stages, starting with a restricted licence in 2018. Volt needed regulatory sign-off before it could take deposits from everyday customers, and that process determined its early years in Sydney.
Looking at how Volt navigated APRA’s process, the timeline shows two licence stages spanning eight months, each with its own set of rules. Let’s explore how each stage played out.
Restricted ADI Licence
Volt became the first entity granted APRA’s restricted ADI licence in May 2018. Once this approval came through, Volt could start operating with limits before earning full approval.
This licensing pathway was designed to help fintech challengers enter Australia’s banking sector without needing years of capital upfront. Along with that pathway, it gave co-founders like Weston and Bunbury two years to build capability before facing the same rules as major banks.
Full Banking Licence in 2019
After clearing that restricted phase, Volt secured its full banking licence from APRA in January 2019. It became the first standalone Australian neobank to reach this milestone, and beat out several competitors racing toward the same goal.
Eventually, Judo Bank and Xinja followed with their own licences that same year. Volt’s early lead gave it more time to build customer trust and test products ahead of the pack.
Building Volt’s Core Banking Technology
By the time Volt was ready to launch, it had built its systems on Temenos’ T24 core banking platform, later renamed Temenos Transact. What’s more, the bank went on to sign a cloud deployment partnership with Microsoft for its infrastructure.
These technology choices let Volt operate as a fully digital bank without branches. Every account, transaction, and customer interaction ran through software instead of a teller.
How Did Volt Bank Raise Its Funding?
Building a bank from nothing means one thing above all else: money, and lots of it. Volt didn’t have decades of profit sitting in reserve like the major banks, so every stage of growth depended on convincing outside investors to back the vision.
The search for capital spanned several rounds, from an early 2020 raise to a partnership with a major mortgage broker the following year. Each round told its own story about how much confidence the market still had in Volt.
A quick breakdown shows how the numbers stacked up over time.
| Funding Event | Date | Amount |
| Capital raise | January 2020 | $70 million |
| Series E (AFG) | June 2021 | $15 million |
| Series E target | Ongoing | $85 million |
| Planned raise | February 2022 | $200 million |
Volt’s AFG investment gave the mortgage broking company a 7.6% stake in exchange for $15 million, part of an extended Series E round. This round aimed to raise $85 million but landed at $37.7 million, nowhere near what Volt was chasing.
By February 2022, Volt’s shareholders were told the business needed a $200 million raise to keep growing. That gap between target and actual capital became a warning sign for what came next.
Steve Weston’s Business Strategy: From Deposits to Banking-as-a-Service
Switching to banking-as-a-service gave Volt a fresh shot at revenue once its original deposit model stalled. Volt eventually shifted away from retail deposits. They chose instead to supply their banking technology to other companies through a single business strategy built around one platform.
It’s a fair question to ask why a licensed bank would walk away from taking deposits at all.
Why Volt Pivoted to Banking-as-a-Service
Volt abandoned its original retail deposit model after struggling to win new capital from investors. Once that funding gap became clear, the board repositioned Volt as a banking-as-a-service supplier instead. They decided to operate as a technology provider rather than a traditional deposit taker.
This strategy aimed to generate revenue without relying on deposit growth alone. By offering its technology to other businesses, Volt could earn fees regardless of how many customers signed up directly.
Volt’s Key Partnerships
Volt partnered with several companies to distribute its banking technology and services, including a Microsoft Azure partnership for its cloud infrastructure. Three partnerships in particular show how far this strategy stretched across different industries:
1. PayPal Partnership
The bank counted PayPal among its early distribution partners as it built out its banking-as-a-service network. The deal gave Volt exposure to a global payments audience well beyond Australia’s borders. For a bank still finding its feet, that kind of partner added instant credibility with future clients.
2. Cotton On Partnership
Retailer Cotton On used Volt’s banking technology to explore its own financial products for shoppers. This partnership showed Volt’s platform could work for retail brands, not just traditional finance companies. It opened the door to a wider set of industries interested in launching branded banking products.
3. AFG Partnership
As mentioned earlier, AFG took a 7.6% stake in Volt for $15 million and used its technology to power mortgage broker tools. The deal gave AFG’s network of almost 3,000 brokers access to Volt’s digital mortgage and banking systems. This partnership remains one of Volt’s most concrete banking-as-a-service wins.
What Challenges Did Volt Bank Face?
Volt ran into regulatory costs, tough competition from major banks, and a funding market that turned cold fast. None of these problems showed up one at a time, either.
Here’s a rundown of the biggest hurdles Volt faced along the way:
- Regulatory Compliance Costs: APRA required significant capital and ongoing compliance work from every licensed bank. Volt had to fund this overhead long before it earned steady revenue from customers.
- Major Bank Competition: Major banks dominated distribution networks built up over decades across Australia. When push comes to shove, a new entrant struggles to match that reach without years of brand trust or industry support.
- Cooling Investor Sentiment: Investor appetite for neobanks cooled sharply after 2021, which tightened funding options across the sector almost overnight. Tracking Volt’s funding rounds against its competitors shows just how quickly that sentiment can turn.
Regulatory pressure aside, Volt also had to fight for customers in an industry where switching banks isn’t something Australian consumers do often. Founders raising capital in this period also had to factor in CGT reform, one more variable on top of open competition pressures.
Why Did Volt Bank Collapse in 2022?
For all its early promise, Volt’s story ended abruptly in 2022. Volt’s board concluded it couldn’t secure enough capital to fund its new banking-as-a-service strategy, despite months of trying to attract fresh investors.
That’s a hard call for any board to make. The bank handed back its licence to APRA on 5 July 2022, ending five years of deposit-taking operations as one of Australia’s first neobanks. More than 140 staff lost their jobs as Volt wound down its remaining operations, a number that sits heavy on any CEO.
At the end of the day, Volt simply ran out of runway. The board, chaired by former HSBC Australia chief Graham Bradley, decided the company couldn’t keep operating without the capital it needed. All customer deposits were returned in full under APRA’s supervision.
Where Is Steve Weston Now?
Steve Weston rejoined Barclays as head of everyday money management shortly after Volt’s closure. He returned to the same UK bank where he once ran the mortgage division, this time overseeing a different part of the business.
Some habits stick, even after a bank folds. Weston continues drawing on his neobank experience in his current banking role, and he still talks about Volt’s technology decisions when discussing modern banking challenges.
Among industry leaders in London, his run as CEO building and closing Australia’s first neobank remains a reference point. It shows what digital banking can and can’t achieve without deep capital reserves.
The Last Word on Volt
Steve Weston’s Volt Bank story shows both the promise and the risk of fintech disruption. His path from Barclays executive to neobank founder shows how fast Australian banking can shift when the right policy window opens.
Not every founder gets a second chapter like this. Volt’s rise and fall offers real lessons for future founders chasing a digital banking licence, and the funding gaps and competitive pressure from major banks explain why so few succeed.
Got a business story worth telling, or questions about Australia’s banking sector? Get in touch with our team; we’d love to hear it.
Frequently Asked Questions (FAQs)
Still curious about the finer details of Volt’s story? These five questions will answer more.
Did Volt Bank Ever Offer Home Loans?
Yes. Volt launched home loans through the broker channel, targeting owner-occupier refinances with low loan-to-value ratios first. It later partnered with AFG to deliver a white-label mortgage product called AFG Home Loans Sparc, which gave customers another way to pay off a loan through Volt’s technology.
How Did Open Banking Affect Volt Bank’s Plans?
Volt became the sixth bank accredited under Australia’s open banking framework, known as the Consumer Data Right, in October 2021. This gave Volt more control over how it shared customer data with partners like Frollo, strengthening its broader banking-as-a-service network.
What Happened to Customers After Volt Bank Closed?
Most customers transferred their balances to other banks before the July 2022 deadline. The remaining 441 accounts, worth just over $113,000, were automatically moved to National Australia Bank, one of the country’s major banks.
What Happened to Investment From Volt Bank’s Shareholders?
Shareholders like AFG lost their equity stake once Volt shut down, though AFG confirmed the collapse didn’t affect its own future earnings. Volt’s board had reviewed capital-raising efforts globally before concluding the business couldn’t continue operating.
Could Steve Weston Create Another Bank in the Future?
There’s no public confirmation of Weston starting a new bank at this stage. He’s currently focused on his role at Barclays, though his journey building Volt remains an example other founders study closely.
