Neobank 86 400 has obtained a full ADI license from the regulator, meaning it has avoided the neobank route to obtaining a restricted ADI and the group has moved straight to an unrestricted license.
86 400, from end-to-end payment provider Cuscal, had always stated that it would not obtain a restricted banking license but would instead opt for an unrestricted license.
Although it is not the first neobank to obtain a full ADI, it is the first not to have obtained a restricted ADI, with Judo, Xinja and Volt all having obtained a restricted ADI before obtaining their full one.
86 400 chief executive Robert Bell said over the past two years the bank had worked to find a smarter alternative to Australian banking methods and this full license meant it met the same requirements regulatory requirements than the big four banks.
“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 safe as any physical bank. All that remains is to release 86,400 of them, which we are now on the verge of doing,” said Robert Bell.
The license means that the bank’s capital position is secure and that the proprietary technology stack built by 86400 is safe and secure, with appropriate risk and ethical standards embedded throughout.
The bank will initially launch transaction and savings accounts and will be able to accept unlimited deposits from customers. As it meets the same regulatory requirements as the big four banks, it will benefit from the same level of protection.
The bank said it will take just two minutes to create an account with Osko and that, from launch, customers will have access to all digital payments, such as Apple and Google, as well as a Visa debit card, a access to ATMs and customer support.
86,400 has been designed for smartphones and through the use of data and analytics, customers will gain a better understanding of their spending and saving habits, enabling them to plan for the future.
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.
Anthony Thomson, chairman of 86 400 and former founder of two UK challenger banks, said 86 400 had taken advantage of the incredible technology out there and could finally offer Australians a smarter way to bank.
“Smart technology is everywhere: smartphones, smart cars and even smart homes,” Mr Thomson said.
“They exist to make our lives easier and more convenient. But when it comes to managing our finances, these same benefits have not been available to us until now. Designed for smartphones, our smart bank will help people take control of their money, offering much more than they expect from a bank.
