Neobank 86 400 is gone, absorbed by ubank

author-avatar By
on May 17, 2022 Fact Checked
Neobank 86 400 is gone, absorbed by ubank

With NAB having completed the acquisition of 86 400, the neobank's branding has disappeared and been absorbed into a rebranded ubank.

With the 86 400 brand gone, all of its products have now been rebranded as ubank. 

Ubank's logo will also take on 86 400's old colour scheme, font, and styling - as below - becoming all lowercase letters.

The refreshed ubank will also adopt 86 400's app features such as savings targets and bonus interest targets.

The acquisition has been more than a year in the making, with NAB first announcing plans to acquire the neobank in January 2021 at a reported price of $220 million.

UBank86400.jpg

Ubank CEO Philippa Watson says the merger is complementary.

"Our team has an incredible combination of banking and technology leaders and I'm looking forward to seeing this team continue to bring innovative technology and money solutions to customers," Ms Watson said.

"We’ve got leading technology from Australia’s first smart bank paired perfectly with a brand that has been trusted by Australians for almost 15 years."

Samuel Philipos, director of mortgage brokers Benevolence Financial Group, told Savings.com.au the acqusition is mainly motivated by technology.

"NAB buying 86 400 is an example of fintech's future threat and opportunities that are threatening the incumbent business models that include huge expenses such as their branch networks," Mr Philipos said.

"NAB's acquisition of 86 400 was particularly important to accelerate growth of its digital bank ubank using 86 400's technology.

"Similarly with CBA owning start ups such as OwnHome, this allows the major players to be directly involved in the fintech space and provide innovative solutions whilst catering to their current customer base."

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.



The state of neobanks

Brand Founded Fate
86 400 2017, granted ADI in 2019 Acquired by NAB, merged with ubank May 2022
Alex 2018 Offers loans, on a restricted ADI so limited transaction accounts
Judo 2016, granted ADI in 2019 Offers term deposits and business lending products
Up 2018 Offers transaction and savings accounts, shares ADI with Bendigo Bank
Volt 2017, granted ADI in 2019 Savings product still in beta
Xinja 2017, granted ADI in 2019 Folded in early 2021

Majors continue to major

All four major banks recently released their quarterly updates and all paint a fairly similar picture - the boost in the property market has helped their bottom lines.

For the second half of 2021, the majors' combined cash profit after tax amounted to $14.4 billion, up 5.1% on the first half of 2021.

That said, net interest margins (NIMs) are generally down, fuelled by low fixed interest rates on home loans.

KPMG banking strategy lead Hessel Verbeek said the Reserve Bank's recent cash rate rise should filter through to higher NIMs for the major banks.

"The market dynamic has been dominated by the NIM decrease resulting from low lending rates in a very competitive market and strong demand for low margin fixed rate mortgages," Mr Verbeek said.

"This downward pressure has only partially been offset by lower funding costs from near-zero deposit rates. The impacts of an extended period of low interest rates are deeply baked into net interest margins."

See Also: What are Australia's largest banks?


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Online Saver ($1-$100k)

        0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Reward Saver

          000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          BU Savings Account

            Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of June 29, 2022. View disclaimer.


            Photo by cottonbro on Pexels

            Latest Articles

            author-avatar
            Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

            Be Savings smart.
            Subscribe for free money newsletters.

            By subscribing you agree
            to the Savings Privacy Policy