In a move that puts it one step closer to offering home loans to Aussie buyers, burgeoning digital bank 86 400 has today announced a new partnership with mortgage and finance aggregator Vow Financial.
The partnership with Vow Financial (which is part of the Yellow Brick Road Group) means that the neobank will be able to deliver its home loans through a network of over 1,200 mortgage brokers.
“Mortgage brokers have long driven competition and choice for consumers and we’re excited to be on the panel of lenders of Vow Financial, one of Australia’s largest aggregators,” said Robert Bell, 86 400 CEO.
“We didn’t set out to create a standard home loan product — we are building an entirely new approach to the home loan process that will make life easier for brokers and deliver better value to customers.”
While the partnership puts 86 400 one step closer to being able to issue home loans, the digital bank still has a few pieces of the puzzle to complete before it’s able to offer any banking products to the public.
Chief among these is securing a full banking license from regulator APRA which would give 86 400 the status and abilities of an authorised deposit-taking institution.
Unlike some of its fintech rivals, 86 400 made the decision not to apply for a restricted banking licence available to startups, instead focusing on acquiring a full ADI licence which will allow it to offer bank accounts, savings accounts and home loans like a traditional bank.
Just when 86 400 will be able to start functioning as a fully fledged bank remains uncertain, though it has previously flagged its intention to launch at some point in 2019.
Though if Yellow Brick Road Group General Manager, Clive Kirkpatrick’s sentiment is anything to go by, Aussies can look forward to some innovative home loans from 86 400 in the near future.
“86 400 is completely transforming the home loans process, providing more choice to home buyers. We look forward to continuing to work with 86 400 to provide Aussies with better value when it comes to buying a home,” he said.
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