From today, Australians can move their money into savings and transaction accounts offered by neobank 86 400. The challenger bank’s public launch will also introduce users to new tools to help them manage upcoming bills and subscriptions, and provide an overall view of their finances across multiple banks.
The launch comes one day after fellow neobank Xinja secured its full banking licence and began offering transaction accounts to early customers.
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86 400 (named for the number of seconds in the day) was granted its banking licence on July 18 and 48 hours later had its app live in the app store for friends and family to download. Two weeks ago users on the bank’s waitlist were invited to download the app.
The company hasn’t disclosed how many customers it has, but says thousands are already using 86 400’s full transaction and saving accounts. For those interested in counting, challenger bank Up has more than 100,000 users and Xinja says it has 28,000 customers either using its prepaid travel card or on its waitlist.
With the nationwide launch today, 86 400 is targeting Australia’s 8 million mobile bankers, primarily aged between 25 and 45, or when financial lives start to get more complicated.
The bank, which is backed by payments company Cuscal, is currently offering two accounts (Pay and Save), $0 monthly fees and a 2.5 per cent variable interest rate which users qualify for if they deposit $1000 a month into their 86 400 accounts.
At the core of the bank’s value proposition is a string of smart features to help Australians take control of their money. For example, the app will nudge consumers to make a deposit in order to qualify for the bonus interest rate.
The technology allows users to connect and view their existing bank accounts – plus credit cards and home loans – all within the app, providing a snapshot of the future and present financial state over multiple banks.
The 86 400 app clearly displays money coming in versus money going out each month and provides customers with simple actions they can take to better manage their money, such as providing nudges about upcoming bills, subscriptions and direct debits.
The bank has also commissioned research which found Aussies are spending $2.7 billion each year on unused subscriptions – the equivalent of almost $500 per person – and are being charged nearly $1 billion in late fees over the same period.
“Managing your money shouldn’t be so hard, but the simple fact is that staying on top of your finances has become too complex, leaving many Australians feeling anxious, stressed and frustrated,” said Robert Bell, CEO, 86 400.
“Today, we’ve launched a bank which uses smart technology to show customers what’s actually going on with their money, so they feel in control every second of every day. All eighty-six four hundred of them.”
86 400 plans to launch a competitive home loan offering, which will be available through brokers in the coming months.