86 400 appoints Morgan Stanley for external capital raising
86 400, a genuine alternative to the Big Four banks, has announced it will undertake a capital raising process to support the next phase of its growth beyond launch, appointing Morgan Stanley Australia Limited to assist with this process.
To date, the aspiring bank has been supported and fully funded by Cuscal Limited, Australia’s leading independent payments provider. 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).
The business model for 86 400 has been designed from day-one to deliver better value for consumers. Its smarter technology, simpler operating structure and streamlined systems and processes will enable the business to make savings that will be passed onto its customers, and result in better returns for its investors.
Robert Bell, CEO of 86 400, said: “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.”
Anthony Thomson, Chairman of 86 400, also commented: “We look forward to introducing new, like-minded shareholders to the business towards the end of this year, as we deliver the easiest version of banking to Australian customers. Our mission is to help Australians take control of their money, placing them at the very centre of what we do – every second, of every minute, of every day. All eighty-six four hundred of them.”
To find out more about 86 400 or sign up for the waitlist, please visit: 86400.com.au
