Australian digital-only bank 86 400 today announced $34 million of new equity, closing a Series A capital raise and bringing the total amount of capital it has raised to $90 million. The funds will go to new product and feature development and support mortgage book growth.
The latest round of funding was led by Morgan Stanley and also includes an Australian superannuation fund, fund managers, and high net worth individuals. The new investors join 86 400’s first backer Cuscal Payments, which owns the rediATM network.
86 400, named after the number of seconds in a day, launched in September last year, offering a slick banking app and easy sign up. It added home loans a few months later and is now targeting a $2 billion mortgage book by the end of 2021.
The bank claims its innovative approach to ID verification means it can approve loans online, without paperwork or face to face meetings, in little as two hours.
The bank says it has 170,000 accounts on its platform and sees more than 350,000 transactions and balance updates each day.
86 400 CEO Robert Bell says he expects to hit half a million accounts on the platform over the next 12 months and expects to add three new banking products by the end of this year.
“We don’t think it unreasonable to see ourselves as Australia’s most advanced neobank,” Bell said. ”That’s down to the fantastic work of the 86 400 team and a single-minded focus on doing what’s right for the customer, every second of every day.”
Bell said the bank launched with today’s banking basics – real-time payments, Apple and Google Pay, and a competitive saving rate – but will continue to push into other verticals.
86 400 already offers a free energy switching service and is amongst a select group currently trialling Australia’s open banking regime.
“All of us want to feel more in control of our finances, particularly in difficult times like these, and we’re delivering smart banking products which do just that.”