The banking sector is about to get more competitive thanks to two big announcements in the last week. We break down why this will lead to better deals for your saving and borrowing needs.
Australia’s first digital bank, volt bank, formally received its interim banking license from the Australian Prudential Regulation Authority (APRA). The team at volt are committed to shaking up the local banking sector, and this is good timing for consumers in light of the damaging revelations from the Banking Royal Commission. As volt CEO Steve Weston noted, “Clearly trust [in the banks] is under enormous pressure and even if the trust isn’t broken it’s hanging by a thread”.
Over the coming months, volt bank will work towards its consumer launch, so register your interest at voltbank.com.au today.
Why make the switch?
Digital banks like volt can offer you a better deal as they can focus on mobile and digital banking without the traditional costs of banks such as having branches. But don’t worry, they will have to demonstrate their capacity to operate as a bank to APRA before they get their license.
Additionally, the Federal Government gave the green light to the first series of open banking reforms. Open banking standards and regulations will enable banks and fintechs to securely access your banking data with your consent.
Under the changes, all banks will have to make credit and debit card, deposit and transaction account data available by July 1 next year, and mortgages by February 1, 2020. Over time, this will lead to even more competition and make it easier for you to switch to banks like volt.