ACCC Not to Oppose NAB to Acquire Local Neobank 86 400

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

Founded in 2019, 86 400 has built and launched a mobile-led digital bank and was granted an ADI licence in July, delivering its services through a smartphone application. 

After 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.

Rod Sims, Chair of ACCC, stated, “Innovative fintechs play an increasingly critical role in the market, challenging the established banks, leading to more innovative and cheaper banking for consumers. We therefore examined the proposed acquisition particularly closely, including extensive consultation with industry participants, given the important role of that innovation.”

“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.” 

“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.”

“Whilst in this instance we found that the removal of 86 400 is unlikely to substantially lessen competition in the market, we will continue to closely scrutinise proposed acquisitions of emerging competitors, particularly by major banks.”

As Fazzaco reported, NAB entered into a scheme implementation agreement​ to acquire 100% of the shares in 86 400.