By Tom Watson· Friday 06 March 2020
Launched in September 2019, 86 400 are part of Australia’s burgeoning neobanks scene - a group of mobile-only banks using the latest technology to offer a genuine banking alternative to a new generation of tech-savvy customers.
As Tyler explains, while they’re certainly appealing to users who are looking for the latest in banking technology, including those craving greater insights and control of their own money, 86 400 is also determined to make a statement when it comes to rates.
“What we’ve set out to do at 86 400 is to help Australians take control of their money. We have a huge opportunity to show Australians what banking could – and should – be like. We’re extremely competitive on the things you’d expect – like interest rates – but we also give our customers things they’d never expect to see from a bank,” he said.
“Banking hasn’t really changed in the last 100 years but our lives and our world has. We’re giving customers a view of not only what’s happened with their money, but a view of what’s coming up – showing them their upcoming bills and regular subscriptions across all of their bank accounts.”
It’s also about driving a shift in mentality.
According to Tyler, 86 400 don’t want to be a bank whose game is based on making money off customer inertia. They want to do the opposite, and they’ve already started bringing out the tools to back up that sentiment.
“We’ve built a smartbank that puts the customer first, every second of every day, with products designed to help them out, not catch them out. We have already helped tens of thousands of customers ditch monthly fees and get a better savings rate. In fact, 90% of savings balances are earning our market-leading bonus rate each month, thanks to helpful reminders which keep customers on track.”
Despite being less than six months old, 86 400 has already made a real impression, including with the Mozo expert judges. In the 2020 Mozo Experts Choice Awards, 86 400’s Save Account was named a winner in the Regular Saver Award category which recognises accounts with the best ongoing savings rates.
Just how good is the 86 400 Save Account rate you ask? According to our latest figures, 86 400’s 2.25% maximum interest rate (for savers who deposit $1,000 or more a month into a Save or Pay Account) is currently the joint-highest ongoing rate in the Mozo database.
That’s just one feature aimed at lighting up the eyes of Aussie savers though.
Along with savings reminders and a competitive interest rate, 86 400 recently became one of the only banks in Australia to offer multiple savings accounts which can all earn the maximum 2.25% rate - a feature that well and truly got the tick of approval from their users.
“We’ve received over 5,000 pieces of feedback since launching which have helped shape our roadmap and delivery priorities. Multiple Save accounts was something that our customers were asking for and since launching, our intake of deposits has increased by close to 300%,” Tyler explained.
“By opening multiple Save accounts with us, customers are able to divide their money and save more effectively toward multiple goals without losing out on interest, earning our market-leading bonus interest across all their savings accounts on up to a maximum balance of $100,000 per account (that’s bonus interest on up to $300,000 in total). And with instant transfers via Osko, they can move money into their Save accounts and earn interest immediately.”
As the new players on the banking scene, neobanks like 86 400 have certainly attracted plenty of queries and questions from Australians - one of the most prevalent being about security.
According to Mozo survey results detailed in the recent Neobank Report 2020: Digital banking in a new decade, 42% of survey respondents reported that security was their number one priority when it came to banking experience.
Of course, this is not surprising when it comes to the topic of people’s hard earned savings, but as Tyler states, 86 400 is held to the same standards and governed by the same regulations as every other Australian bank.
“We’re a fully licenced bank, we received our full banking licence in July last year and what that means for customers is that our deposits are guaranteed up to $250,000 per customer by the Australian Government,” he said.
And for those people who are not entirely ready to make the full neobank switch just yet? Tyler says that Australians are welcome to try out 86 400’s features first.
“You don’t even have to break up with your current bank to take advantage of our smart banking features. Customers have already connected over 70,000 accounts from over 100 other banks and we’ve helped these customers see what bills and subscriptions are coming up to avoid late fees and cancel the ones they aren’t using.”
While opting for a Mozo Experts Choice Award winning savings account with a seriously competitive interest rate and handy extra features is one way to get your savings game on the right track, there are always other opportunities to save.
As Tyler says, 86 400 are determined to go that extra step in order to shine a light on the potential savings that their customers may not even be aware of.
“In order to be able to save smarter it’s important to firstly have a clear picture of how much money you have, but also how much money you’re spending and where this money is going.”
“We built 86 400 to address modern problems our customers face. We see that Australians are wasting on average $500 per person, per year, on unused subscriptions and a further $50 per year on late fees. We make it easier for our customers to see these, adjust their spending as they like, and avoid potential late fees.”