Aspiring Aussie challenger bank 86 400 has appointed Morgan Stanley in an effort to raise fresh capital, opening the doors to new investors beyond founder backer Cuscal.
While Cuscal will continue to support 86 400, the company is seeking to add new shareholders towards the end of 2019. The capital raising is in line with its business plan, which requires more than $250m of capital over the first three years of operation to fund its growing balance sheet.
86 400 is currently piloting and will launch with a transactions and savings account later this year. It continues to progress its application for a full banking licence from the Australian Prudential Regulation Authority (APRA).
Robert Bell, CEO of 86 400, says: “Over the last two years - and with the support of Cuscal - we’ve invested heavily in building proprietary technology that will change the way retail banking is delivered in Australia. Our app and Customer Experience Engine (CXE) are both built and in testing and we plan to launch with a transaction and savings account soon after we receive our banking licence. But that’s just the beginning for 86 400. We are developing products and services designed to help our customers out, not catch them out, making it easier than ever before for Australians to manage their money.”