Neobank 86 400, which received its full ADI licence in July, has marked its official entry into the Australian banking space with the launch of its “Pay” and “Save” accounts, accessible via its mobile app.
86 400’s Pay account, which has no monthly fees, provides users with access to Apple Pay, Google Pay and Samsung Pay, as well as Fitbit Pay and Garmin Pay.
The account features also include a Visa debit card, fee-free ATM withdrawals, and transactions via payments service Osko.
The neobank’s Save account offers a savings rate of 2.50 per cent, made up of a base rate of 0.40 per cent and a bonus rate of 2.10 per cent, paid on balances of up to $100,000.
To receive the full rate, users are required to deposit at least $1,000 to either of 86 400’s accounts each month.
The accounts are accessible via 86 400’s mobile app, which also enables users to view accounts that they hold with other banks.
The nationwide launch of the accounts has coincided with the release of a YouGov study – which involved a survey of 1,103 Australians – which found that a cumulative $2.7 billion was spent each year on unused subscriptions (almost $500 per person).
According to the research, Australians were also being charged nearly $1 billion in late fees over the same period.
Reflecting on the research and on the launch of 86 400’s accounts, CEO Robert Bell said: “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.
“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 has also revealed that it plans to launch home loan offerings in the coming months, which it said will be distributed via the broker channel.
The neobank’s public launch has come just a day after fellow challenger bank Xinja launched its transaction account to the public after it was granted a full ADI licence.
Xinja also plans to roll out home loan offerings, which it expects to officially launch in the first quarter of 2020.
[Related: RedZed launches new digital loan portal]
Charbel Kadib is a journalist on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).