86 400 targets $2 billion mortgage growth

  • By Christine St Anne

Garnering a one year track record, with $40 million in mortgage loans, the neobank will be announcing a major partner that will “supercharge progress” towards its $2 billion target.

It is the first of the neobank’s to offer mortgages, having focused on “building out both sides of the ledger”.

It launched a pilot phase last year and the bank said its digital mortgage offering is now “primed for growth”.

It will be close to announcing the details of its “major partner”.

The bank hopes to reach the $2 billion mark by the end of 2021 and will soon begin a Series B capital raise having closed a $34.5 million Series A round in April.

86 400 now has more than 225,000 accounts on its platform, since it received its APRA bank licence and aims to reach 500,000 by the end of the financial year.

It also has more than $300 million in customer deposits, has processed more than $1 billion in transactions, with 650,000 transactions and balance updates taking place each day.

Five new feature updates have been while also completing a major upgrade to the core technologies powering the 86 400 app, Angular and Ionic, as well as introducing two marketing campaigns: Pay It Forward and refer a friend.

Customer feedback is key for the bank, which said it helped develop products and experiences.

The bank said that its next phase of growth will expand into new segments such as shared finances and deliver further insights into individual spending and savings patterns, helping them get more from their money regardless of where they bank.

Despite the lockdown – the bank managed to transition to remote working – 86 400 has hired 10 staff.

Overall, the 86 400 team has grown by more than 25 per cent since receiving its licence, from 85 in July 2019, up to 109 full-time team members in July this year.

“In a year full of achievements, one we’re most proud of is team engagement,” said Anthony Thomson, Chairman of 86 400.

“Take it from me, building a bank is not an easy thing to do and it’s great to see the number of those who’d recommend 86 400 as a place to work has risen three-fold since license.”