Australia-based neobank has raked in $34m in its Series A equity funding round to accelerate product development and support mortgage book growth.
The funding round was led by Morgan Stanley and saw participation from an Australian superannuation fund, fund managers, high net worth individuals (GNWIs), and family offices.
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The latest funding brings the total funding raised by the challenger bank to date to $90m.
The bank, which launched in September 2019, has introduced seven products in a span of six months.
It intends to use the funding to launch three more products by the end of 2020.
86 400 CEO Robert Bell said: “We’re bringing products to market faster than any other bank in Australia, digital or otherwise.
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By GlobalData“The funding announced today means we can keep our foot firmly on the accelerator, continuing to build out both sides of the ledger and help even more Australians take control of their money.”
86 400’s platform has more than 170,000 accounts on file, which sees over 350,000 transactions and balance updates every day.
It is the only retail neobank entrant in the country that offers home loans and shared accounts, currently in pilot.
The bank noted that it is eyeing for a mortgage book of nearly $2bn by the end of 2021.
Bell added: “At our current rate of growth, we should hit 500,000 accounts on the platform in the next 12 months.
“We do the banking basics extremely well –we’ve had real-time payments and Apple and Google Pay since day one.
“But we’re also giving them products they would never expect from a bank; tools like account aggregation and Energy Switch that actively help customers save more and budget better.”
