Australian challenger bank 86 400 closes $34m Series A funding round

86 400 has over 170,000 accounts on its platform which complete more than 350,000 transactions each day.

Australian challenger bank 86 400 yesterday announced that it has closed a $34m Series A round led by US investment bank Morgan Stanley.

86 400, named after the number of seconds in a day, has now raised a total of $90m and said the new funds will help develop new products, develop the bank and further expand its mortgage book.

Robert Bell, CEO of 86 400, said: “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.”

Bell added that on its current trajectory, 86 400 will hit 500,000 accounts over the course of the next year and with a mortgage book close to $2bn by the end of 2021.

Founded in 2017, 86 400 is currently the only Australian challenger bank to offer home loans and shared accounts. 

The digital neobank was granted its full banking licence in July 2019, meaning that any money deposited into the bank is protected by the Australian Government’s Financial Claim Scheme up to $250,000.

Last month 86 400 slashed its savings rates in line with the Reserve Bank of Australia’s move to cut interest rates to a record low of 0.5 per cent.