APRA recently granted 86,400 a full ADI license after the bank avoided the “neobank” route of first obtaining a restricted ADI.
With the full license, 86,400 can now bring their suite of products to market, with the first iteration being a springboard to eventually take on the majors.
“We want to create a smarter alternative to the big four banks. It’s a big ambition but it’s entirely appropriate, but we have to start somewhere,” he said.
Ambition was part of the reason the bank settled for the full license, Mr. Bell said, rather than spending time obtaining the restricted license.
“There was no benefit to spending the time and effort on the restricted license when we had the time, technology and skills to go straight to a full license,” he said.
Mr Bell said regulators had tested the business and scrutinized it, so the bank now had the same safeguards and protections as the majors.
“This has been an incredibly thorough process and we have stress tested every element of our business to confirm that we are as robust, secure and secure as any physical bank,” he said.
Their product brought to market had already been tested by all 86,400 employees, Mr. Bell said, which is a fact many in the industry did not know.
“We stayed pretty behind, using and testing our product. Our strategy has always been there: we want people to talk about us when they can discover us,” he said.
Chairman Anthony Thomson said the bank strived to provide its customers with a bank they could trust and would put them first.
“Our job is to prove to customers that we put them first and there are ways to do that, fairness and transparency being the most obvious.
“So we don’t have any hidden fees, we’re very open with people. If you have a savings account and you need to deposit a certain amount into it to qualify for your bonus and you haven’t deposited it, we will tell you,” he said.
Mr Thomson said research on Australians showed most consumers did not feel in control of their finances. The bank therefore wanted to solve this problem by consolidating all consumer data in one place.
“Through our app you can not only view your 86,400 account, but you can also view all your other bank accounts in one place through our app so you can see what transactions have taken place and we can, through AI and data analysis, start to predict what type of bills are going to be coming for you,” Mr. Thomson said.
What sets 86 400 apart is that it was created to be a mobile bank, unlike brick-and-mortar banks which have had to adapt over time, Thomson said.
“We’re talking about the first smart bank because what we’ve tried to do is build a smart bank for smart phones, smart cars and the smart lives that people lead today,” he said. -he declared.
The bank will initially launch a transaction account with a Visa debit card with the option to pay through all digital wallets like Apple and Google Pay.
There will also be a savings account and ATM access and eventually the bank will also offer mortgages to consumers.
“When you think about what the average Australian needs, a transaction account, a savings account and a home loan, you’ve covered 80 per cent of what most consumers need and that’s why we We started there,” Mr. Bell said.
In a move that will be welcomed by mortgage brokers, Mr Bell said they were entering the mortgage business through brokers because they were important to the market.
“We have a relationship with two aggregators and will initially work through mortgage brokers. Mortgage brokers are still important in the market and that is why we are entering the market through them,” he said.
The bank will be available on app stores within a few weeks and those on its waiting list will be invited to sign up first.
