86 400 hands back banking licence

The Australian Prudential Regulation Authority (APRA) has revoked 86 400 Ltd’s authorised deposit-taking institution (ADI) licence under the Banking Act 1959. 

The move comes after the neobank worked to hand back its licence following its acquisition by National Australia Bank Limited (NAB) in May 2021.

Following the acquisition, all of 86 400’s banking assets and liabilities were transferred to NAB as the fintech prepares for its merger with the major bank’s own digital subsidiary, UBank.

As such, it will no longer operate under its own ADI licence, instead working under NAB’s licence.

NAB’s strategy is to accelerate growth by combining UBank’s established name and customer base with 86 400’s technology platform and innovation capability.

The 86 400 brand is expected to be subsumed into the UBank brand in due course, with Philippa Watson, chief executive of UBank, leading the helm after being appointed CEO across both businesses.

Former 86 400 CEO Robert Bell has now left the company.

NAB said it was pleased to note the completion of the transfer of 86 400’s banking assets and liabilities to NAB.

Ms Watson commented: “Today marks the start of a new chapter and the completion of another milestone in bringing 86 400 and UBank together.

“Both teams have been working incredibly hard to get to this point, while also continuing to bring exciting new products and features to market at pace and maintaining the highest levels of customer service.

“We’re fully focused on delivering the best possible banking experience to customers as we head into 2022, with plans to help even more Australians to take control of their money.”

Other than operating under NAB’s ADI licence, the major banks said there would be no change to 86 400’s products and services as a result of this transfer and 86 400 will continue delivering outstanding digital experiences to customers.

[Related: UBank CEO to take lead with 86 400]