Risk Company Update

NAB buys 86 400 after digital bank fails

New banking provider 86 400 is to shutter and transfer 85,000 customer accounts and $375 million in deposits to National Australia Bank (NAB). The closure comes after the recent downfall of Xinja, another authorised deposit-taking institution. 86 400 was founded by Cuscal, a Sydney IT management company, with the launch of a mobile digital bank. The company was granted an Authorised Deposit-Taking Institution (ADI) licence in 2019.

NAB has plans to bolster UBank, it’s Australian direct banking business, with the acquisitions of both 86 400 and Xinja customers due to expand its footprint in the market. NAB already had an 18.3 per cent stake in 86 400.