As NAB prepares to report on its 1H21 Financial Results, Chief Operating Officer Les Matheson reflects on work over the past six months to welcome colleagues back to commercial offices and transition to hybrid working.
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National Australia Bank is set to acquire neobank 86 400 in a $220 million deal.
NAB already had a 18.3% stake in 86 400.
It comes at a tough time for the Australian neobank experiment, with vanishingly few independent competitors left.
National Australia Bank has announced it will acquire neobank 86 400 and will fold it into digital offering UBank – leaving Australia’s fledgling neobank experiment looking very feeble indeed.
In an announcement to the ASX on Friday morning, NAB announced it had entered a deal to acquire all of 86 400’s shares for up to $220 million, subject to approval by shareholders and regulators.
NAB already had an 18.3% stake in the neobank, and said it had commenced discussions about a total acquisition in late 2020.
By Ry Crozier on Jan 29, 2021 9:20AM
Will combine it with UBank.
NAB is set to acquire neobank 86 400 and combine it with its own digital-only proposition UBank.
The big four bank already holds approximately 18.3 percent of 86 400 after participating in a recent capital raising round.
It is now proposing to buy out the remaining shares for a cost of approximately $220 million, “a premium” on the recent raise.
86 400 said it has over 85,000 customers and 320,000 accounts, as well as a digital mortgage brokerage business.
The neobank’s CEO Robert Bell said in a statement that joining UBank “will significantly fast-track our growth, propelling our business, customer numbers and balance sheet to a position which would’ve otherwise taken five years.”
NAB Acquires Neobank 86400 in $220M Deal
NAB moved to acquire 86 400 to bolster its own neobank UBank.
“Bringing together UBank and 86 400 is consistent with NAB’s long-term strategy and growth plans and will enable us to develop a leading digital bank that can attract and retain customers at scale and pace,” NAB Chief Operating Officer Les Matheson said in an investor statement (pdf).
UBank CEO Philippa Watson said, “UBank has a proud 12-year history of innovation as a pioneering digital bank and today serves more than 600,000 customers to help achieve their financial goals.”
Neobanks, or challenger banks, are a newer breed of banking institution focusing on digital innovation. Usually, the firms forgo physical branches and on-the-ground staff, maintaining an online presence only.