The 86400 bank app is the new breed of banking. Utilising artificial technology and a complete digital ecosystem to better serve consumers. In this 86400 bank review I highlight all the features of the platform and give my thoughts on the new breed of Neobanks.
What is a Neobank/Smartbank?
Neobanks are financial technology platforms that offer financial services solely through the use of their digital offering. This means there are no old school technology platforms, branches, or bank tellers, therefore keeping costs lower.
The lower overheads for Neobanks enable them to pass on better rates to their customers. They can still maintain strong margins due to technological efficiency. Neobanks are targeted at customers that want their banking solutions available through sleek apps.
Millennials and Gen Z have flocked to Neobanks given their mistrust of traditional Big Banks and their affinity to technology. Neobanks or Smartbanks like 86400 or Revolut provide simple and safe technology based banking solutions that are almost expected of this generation.
What is in the name 86400?
86400 bank is a rather unusual name when you compare it to the more traditional Australian banks. But that is what 86400 is aiming for, to provide an unusual (better) experience than traditional banks.
There are 86400 seconds in a day, the name reflects the bank’s goal of helping Australians be in control of their money every second of every day.
86400 is a fully authorised deposit taking institution after receiving its licence from APRA in 2019. It was an independently owned Financial technology Company, majority owned by Cuscal Payments Ltd.
That changed when NAB announced it is acquiring 86400 on January 25th 2021 for an estimated $220 million. The outcome from this is that 86400 continues to function as it was with more funding and NAB utilises the collective knowledge and experience from 86400 employees to bolster their UBank offering.
86400 Bank Offerings
- Pay Account
- Save Account
- Shared Account
- Home Loans
Upon signing up with 86400 you will be given one Pay account and one save account. Your pay account is your daily transaction account. This will be the account your cool new card will be linked to.
The 86400 pay accounts have Zero fees. This means no account fee, foreign transaction fee or foreign ATM withdrawal fee. The only time you may get charged is for withdrawing Cash from a domestic ATM that’s a non Major bank.
The 86400 Bank save account is also completely free. It also offers a very competitive variable base interest rate of 0.10% pa. The bonus interest rate currently sits at 1.10% p.a.
This bonus interest rate is activated when you deposit $1,000+ per month into any of your accounts (pay or save). The bonus rate is currently paid on the first $50,000 of your account. It is calculated daily from your save account balance.
A cool feature of 86400 bank’s save account is that unlike other banks you can actually send money, pay bills and set up direct debits straight from your save account.
I absolutely love this feature as it prevents you from having to juggle your money across accounts. Helping you manage your cash flow and therefore reduces the risk of bounced payments.
The 86400 shared account, or as they like to call it ‘partner in finance’ account is another great feature.
You are able to set up two shared save accounts and one shared pay account with your ‘partner in finance”. The partner in finance description is important as it can be anyone you want it to be. Without restrictions, whether that’s your actual partner or maybe a dependent etc.
In order to be able to set up a shared account the person you are wanting to share with must already have an individual account with 86400. I went through the beta testing phase of this with my partner and found the process to be very smooth.
We applied via the app to set up 2 shared save accounts and 1 shared pay account. We both had to verify the process separately on the phone with a representative from 86400. This entailed a few security questions and explanation of the account and how we could cancel it if required.
This was a simple process and was set up almost immediately afterwards. We then waited a few days for our shared pay account cards to arrive in the mail. So far we have been really happy with how their shared account feature works.
The 86400 Bank home loans provide you with two options to choose from, Neat Home Loan and Own Home Loan.
The Neat home loan provides a basic level home loan with a standard variable rate of 3.75%. As you pay down your loan and your Loan to Value Ratio decreases, your interest rate also decreases.
This is a really cool feature that rewards you for paying off your loan with lower interest. It could save you thousands more over the course of your loan.
Given the Neat home loan is a basic offering it doesn’t have an offset account, redraw facility or the ability to fix a part of your loan’s interest rate.
If you want a bit more functionality and flexibility with your loan they do have their Own home loan option. This has the option for fixed rate and variable rate loans as well as offset accounts and redraw facilities.
The Own home loan provides you more options and as such will cost a little more than the Neat home loan offering. It does have a $250 annual fee and you will likely have higher interest rates too. Their current standard variable rate is 3.90%.
You are able to fix your rate for up to 5 years. After that the 86400 bank LVR feature will apply moving forward. So as you pay off more of your loan, your variable interest rate will continue to decrease.
As the first Neobank in Australia to offer home loans it has been great to see 86400 turn up the heat on traditional loan offerings.
86400 Bank Features
I will now review the 86400 bank features, offering some pretty cool features for those that embrace technology.
Some of their features include:
- Instant Transfers- Through their use of Osko Pay 86400 users are able to experience almost instant payments to other 86400 app users and other Australian bank users
- External Data integration- Through the approval of Open banking, 86400 is able to access (with your approval) your data from other banking or financial institutions. This then enables them to provide financial insights to your entire financial situation.
- Financial Insights- By linking your other bank accounts or credit cards 86400 is able to provide financial insights into your financial position. It has a cash flow dashboard for your selected time period, as well as a savings tracker. This feature is likely to be expanded upon moving forward.
- Saving Account Payments- Being able to make payments from your savings account is an amazing feature. You can set up direct debits as per other banks. But you are also able to make direct payments from your 86400 saving account and transfer money to others. This is something that can’t be done with other banks and helps control cash flow really efficiently.
- Predicted Bills- If you don’t like to take full advantage of automatic payments this feature is great at making sure you don’t miss any upcoming bills. It uses smart technology to predict upcoming payments based on previous spending habits. This not only works
86400 Bank Future Features
Most banks are extremely secretive about their future business plans. However that’s not the norm for the new breed of Neobanks and Financial Technology platforms.
The 86400 bank has an open sourced business roadmap easily viewable by the public on Trello. Upon reviewing 86400 bank’s roadmap it was clear to see what they are working on. I also cast my vote on what the business should work on next.
It is really cool to see the platform use their customers’ feedback to help shape and guide the platform moving forward. You can see on the roadmap what the 86400 App has currently delivered on such as the shared accounts and Neat home loan.
You are also able to see what they are working on currently and suggest ideas you would love to see in the app, such as linking your superannuation accounts within the app.
86400 Bank Safety
The 86400 Bank obtained an ADI licence in 2019, an ADI licence is an authorised deposit-taking institution (ADIs) and they are covered under the Financial Claims Scheme (the FCS).
The FCS protects money held by an account-holder with an ADI, whether in one or more accounts, up to a total value of $250,000. So your money is safe up to $250,000 should something happen to 86400.
Aside from the protection offered to customers via the ADI licence, the 86400 Bank uses the highest level of bank encryption and latest technology for security of the app. Within the app you have the ability to block your cards if you lose them.
I recently invested into some cryptocurrency to test the waters and see what it was about, but this was the first time and wasn’t my usual investment account. So when I tried to transfer the money my card got blocked by 86400.
This was reassuring and just required a phone call to their customer support team, with some identification and verification the transfer was away. They said there had been a lot of fraudulent activity recently with some crypto wallets and so this was a precaution.
86400 Bank Ethics
One thing that often flies under the radar with most people is that banks actually use your money to lend out to other people and business while also investing in companies too.
As a millennial and someone that cares about what I invest in from an ESG perspective it is nice to know that 86400 takes a stand against fossil fuel companies and unethical companies too.
They state they don’t lend money to these types of companies, as well as not using our money to invest in them either. I am a big believer in your money being a vote for the future, and little things like this will make a big difference for future generations.
Sign up for 86400
This process is extremely simple as you would expect from a Neobank and unlike any experience you will have had from a big legacy bank. You will need to download the 86400 app on your phone and follow the prompts to sign up for an account.
You will need some ID in the form of either your passport, Medicare card or drivers licence as well as your Tax File Number (to prevent withholding tax). Lastly you must be over 16 and an Australian resident to open an account.
Use this code KAAEFSY when you sign up for the 86400 app and score yourself a FREE $10 deposited into your account once you use your new card.