Neobank 86400 to be combined with UBank
One of Australia’s leading neobanks, 86,400, today announced the proposal to acquire it into the NAB family, in association with UBank.
While the acquisition is still subject to regulatory approvals, NAB also issued a statement indicating that it proposes to “acquire the remainder of the shares of 86,400 through a plan of arrangement.”
An alternative to the four big banks, 86400 achievements found by deploying banking products on a daily basis to more than 85,000 customers.
- What is a neobank? A neobank is an approved bank that operates only through smartphone applications.
It also launched the first “digital mortgage” for brokers in November 2019, with December 2020 being the most important month on record for mortgage applications. 86,400 currently has over $ 270 million in home loans settled or approved unconditionally.
What does this change mean for the 86,400 existing customers?
By bypassing the streaky infrastructure of traditional banks and reducing its overheads, the application-based financial services provider could deliver more innovative fintech solutions, while passing on its savings in the form of lower fees and interest rates. competitive interest.
RateCity contacted 86,400 people to find out if the accounts receivable would remain the same. Currently, there is “no immediate change for customers, who will still be 86,400 customers, using the 86,400 application and making purchases with their physical 86,400 card or their Apple Pay, Google Pay ™ or Samsung Pay wallet. “, an informed contact.
Additionally, many Australians who are fed up with the Big Four have turned to neobanks, like 86,400, as a breath of fresh air and a competitive alternative.
RateCity also asked what this proposed change might mean for customers who have chosen 86,400 as an alternative to the big banks.
86,400 CEO Robert Bell said: “Implementation of the program requires approval from shareholders, regulators and the courts, so it will be business as usual for a while and 86,400 will continue to operate as a separate company, led by our dedicated team from our head office in Sydney. “
“Customers will continue to enjoy the same experience, smart products and innovations that they expect from the bank with us.”
“Neobanks have always aimed to provide customers with better products and features, better value for money, better services and a better experience.
“The fact that we can now do this on a large scale is good for all Australians. We will be able to invest even more in our customer experience, product development and long-term innovation, thereby helping more Australians to take control over their money, “said Mr. Bell.
On the other hand, 86,400 deposit customers may feel a greater sense of security, especially after the December announcement. that Xinja had to leave the industry and return all client funds.
In a statement released today, 86,400 President Anthony Thomson said: “Partnering with UBank gives us the scale, funding and capital to dramatically accelerate our growth and reach even more Australians. thanks to our smarter approach to banking. ”
“This means that we will be able to invest even more in developing smart products, experiences and services, helping our customers to own their homes faster and achieve their goals faster through more spending and savings. intelligent. ”
The players still in the neobank space
Following the exit of Xinja and pending the approval of the acquisition of 86,400 and UBank, the number of players in the neobank space seems to be decreasing.
That being said, these app-based providers still offer some of the most competitive savings account interest rates on the market, all of which currently sit at 1% or more.