Australian Financial Group has acquired a 7.6% stake in neobank Volt for $15 million.
As part of the deal, the Australian mortgage aggegator will offer a Volt-funded digital mortgage product to its network of more than 2,975 brokers.
AFG will also tap into Volt’s credit decisioning technology and offer the company’s personal financial management (PFM) app as an own-branded product to home loan customers.
The firms say they also intend to work together to develop and distribute further Volt white label products to AFG brokers, including personal and business loans.
The white label Volt-funded digital mortgage product and AFG branded PFM app are expected to be piloted in the last quarter of the 2021 calendar year and be made available to AFG brokers in the first quarter of 2022.
AFG CEO David Bailey says: “This alliance allows AFG Securities to harness Volt’s nimble banking solutions to deliver market leading innovation and faster decisioning to our brokers and customers.”
Of the PFM tool, he says: “The relationship a broker holds with their customer is fundamental to their success. The provision of the new PFM app technology will enhance that connection and ensure their customers’ interests are kept front and centre.”
The $15 million stake is a minor share in Volt’s current $85 million capital raising exercise.