Australian neobank 86 400 is the latest new entrant to be granted regulatory permission to take deposits, joining the likes of volt bank and Judo Bank.
“The Australian Prudential Regulation Authority (APRA) has granted 86 400 Ltd a licence to operate as an authorised deposit-taking institution (ADI) under the Banking Act 1959,” it said in a brief statement.
86 400 said in a statement of its own that it “is officially Australia’s newest bank”, marking “a significant milestone on the path to public launch”.
“It means 86 400 – which will launch with transaction and savings accounts – is able to take unlimited customer deposits and has met the same regulatory requirements as the Big Four banks,” 86 400 said.
“Today’s news confirms we’ve passed all of the necessary checks and balances required to call ourselves a bank,” 86 400 CEO Robert Bell said.
“This has been an incredibly thorough process and we’ve had every element of our business stress-tested to confirm that we are as robust, secure and safe as any bricks-and-mortar bank.
“The only thing remaining is to bring 86 400 to market, which we’re now very close to doing.”
86 400 plans to use data analytics to help customers better understand their spending and saving habits.
The company also said that customers would be able to “open an account with real-time payments through Osko” in minutes.
“From launch, 86 400 customers will have access to all the digital ‘pays’ – Apple, Google, Samsung, FitBit and Garmin – along with a Visa debit card, ATM access and customer support,” it said.
86 400 is a reference to the number of seconds in a day. It is backed by payment and banking services provider Cuscal.
volt bank was the first of the neobanks to get a full licence back in January this year.