Railsbank forays into the Australian market with Volt Bank partnership

Source: Dilok Klaisataporn, Shutterstock

Summary

  • Banking as a service platform, Railsbank has partnered with Australian Volt Bank to target the country’s embedded finance market.
  • Railsbank would leverage Volt Bank’s BaaS platform and infrastructure for distributing bank accounts, cards, payment solutions to its Australian clients.
  • The Australian neobank would connect with Railbank’s network of customers and partners and enable a broad BaaS solution.

Headquartered in London, banking as a service provider Railsbank has launched in Australia by entering into a partnership with the Australian neobank, Volt Bank.

Railsbank has signed a deal to expand its embedded finance market in Australia. The agreement forms a part of  Railsbank’s strategy to grow in the APAC region.

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Sydney-headquartered Volt Bank is the next generation of banking that is digital, independent, and transparent. The concept of neobanks in Australia came in 2019 after Volt received a full license to function as an authorised deposit-taking institution. Volt was the first digital bank in Australia launched in 2017 and continues to be a prominent challenger in the country.

In Australia, Railsbank is registered as RailsPay. With the partnership, RailsPay would leverage Volt Bank’s backend-as-a-service (BaaS) platform and infrastructure for distributing bank accounts, cards, payment solutions to its Australian clients.

According to Justin Xiao, the Chief Operating Officer of Railsbank, Australia is strategically important for the Company. Its partnership with Volt Bank would help support its next phase of growth. Mr Xiao also stated that the embedded finance market is in its nascent stage in Australia and has significant potential to grow in the upcoming period.

Besides, Volt’s solid balance sheet, brand name and compliance offering make it an ideal partner for Railsbank to launch in the Australian market and tap the substantial growth opportunity in embedded finance.

Source: Copyright © 2020 Kalkine Media Pty Ltd.

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More About the Partnership Between Volt Bank and Railsbank

Under the agreement, Volt would be involved with the global network partners and customers of Railsbank. The partnership would look at Neobank as a more comprehensive banking-as-a-service company to prototype, launch, and widen financial products.

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