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NAB snaps up neobank in $220m deal
NAB is set to snap up a neobank in a deal said to cost $220 million, as it looks to enhance its digital offering.
NAB snaps up neobank in $220m deal
NAB is set to snap up a neobank in a deal said to cost $220 million, as it looks to enhance its digital offering.
NAB has announced its acquisition of a 100 per cent stake in Aussie neobank 86 400 in a bid to accelerate its offshoot UBank and deliver a “market-leading digital experience and new product propositions to customers”.
According to NAB, the $220 million deal will accelerate UBank’s growth by combining its established customer base, brand and colleagues with 86 400’s experience and technology platforms.
“UBank has a proud 12-year history of innovation as a pioneering digital bank and today serves more than 600,000 customers to help achieve their financial goals,” said UBank CEO Philippa Watson.
“Combining with 86 400 will bring together UBank’s established business and 86 400’s experience and technology platform to meet the changing needs of our customers. We are looking forward to having the 86 400 team join us to deliver the next generation of simple, fast and mobile banking solutions.”
NAB commenced its discussions with 86 400 in late 2020 and participated in its Series B Capital raise, taking its current holding in the neobank to 18.3 per cent.
86 400’s independent directors have now unanimously recommended that is shareholders vote in favour of NAB’s proposed takeaway by way of a scheme of arrangement.
86 400 CEO Robert Bell said: “Over the past 18 months, we’ve challenged the status quo of banking through innovative products, services and technology. 86 400 and its customers will benefit from NAB’s capital and balance sheet strength and investment spend to support accelerated growth and continued innovation, helping even more Australians take control of their money.”
Founded by Cuscal Ltd and led by CEO Robert Bell, 86 400 has built and launched a mobile-led digital bank and was granted an ADI licence in July 2019. As at 15 January 2021, 86 400 had more than 85,000 customers, $375 million of deposits, $270 million in approved residential mortgages and 2,500 accredited brokers.
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