The Australian Competition and Consumer Commission (ACCC) confirms today that it will not oppose the proposed acquisition of 86 400 Holdings Ltd by National Australia Bank Limited (ASX:NAB).

86 400 launched in 2019 and is a digital only bank, delivering its services through a smartphone application.

“Market feedback suggested that while 86 400 is innovative, particularly in reducing the time and effort in completing home loan applications, there are a number of other businesses with similar offerings or the ability to replicate them. These other competitors continue to bring a similar disruptive influence to the market,” ACCC Chair Rod Sims said.

“Supporting our decision is that we have seen several banks and non-bank lenders outside the big four invest heavily in their technology and service offering to improve user experience,” he added.

Post-acquisition, NAB’s existing digital bank UBank will be integrated with 86 400. UBank is NAB’s online only bank brand. NAB offers a broad range of financial products and services, including transaction and savings accounts, and business and home loans.

86 400 is a digital bank headquartered in Sydney. 86 400 does not operate a physical branch network, or online browser-based banking facilities, with the key customer interface being the 86 400 smartphone application.

86 400 has offered online transaction and savings accounts since September 2019, and launched a home loan product sold through a network of selected brokers in November 2019. 86 400 is majority owned by Cuscal Ltd, one of Australia’s largest independent payments providers.

NAB commenced discussions with 86 400 in late 2020. To support 86 400’s growth, NAB subscribed for a minority stake in 86 400. In the end of January 2021, NAB proposed to acquire the remainder of shares in 86 400 by way of a scheme of arrangement.