Fintech firm 86 400 has received secured a banking licence from the Australian financial regulator.
Australian Prudential Regulation Authority (APRA) granted the digital lender permission to operate as an authorised deposit-taking institution (ADI) in the country.
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In a statement, the regulator said that 86 400 was granted the licence under the Banking Act 1959.
The approval from APRA will enable the 86 400 to initially offer savings accounts, transaction accounts and home loans.
Named after number of seconds in the day, the challenger bank is backed by Australian independent payments provider Cuscal. The bank initiated beta testing in December last year.
The move comes at a time when several digital challengers have arrived in the Australian market and are at different stages of approval. Start-up Volt Bank secured licence in January this year.
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By GlobalDataXinja, another challenger bank, has a restricted banking licence.
The entry of such digital lenders is expected to heat up the competition in Australian banking industry, which is largely dominated by Big Four.
The Big Four banks-NAB, ANZ, CBA and Westpac – have a combined market share of around 80% in Australia.
86 400 is expected to place its app on the Apple’s App Store and the Google Play Store for download in the following weeks, reported Herald Sun.
Once it is approved, the lender will commence general business by accepting customers from its waiting list.
