86 400 is getting ready to launch home loans, announcing broker partnership
The challenger bank hasn't launched yet, but it's pulling the software, tech and distribution network together to bring its digital mortgages to market.
86 400 is one of a handful of neobanks looking to challenge – and change – the way Australians handle home loans. Today they announced partnerships that will move their mortgage offering one step closer to reality.
86 400 will be on Vow Financial's lending panel. Vow Financial has over 1,200 mortgage brokers across Australia, with a loan book worth $45 billion.
This distribution network will allow 86 400 to reach borrowers across the country. Over 55% of new loans involve a mortgage broker (according to this report from Deloite). And millenials, a key market for 86 400, are the most likely age group to use brokers.
86 400 CEO Robert Bell said, "We are building an entirely new approach to the home loan process that will make life easier for brokers and deliver better value to customers."
The neobank plans to combine the broker distribution network with its own proprietary banking software, which it calls a "Customer Experience Engine".
The company has also announced partnerships with Simpology and Loanworks.
Loanworks will handle the loan processing software side of things. Both Simpology and Loanworks' technology will be integrated with 86 400's platform.
With funding provided by Cuscal, the only thing standing in 86 400's way is a banking licence from APRA (currently in the works).
Australia's digital banks are promising to change how Aussies handle their money. We'll be watching 86 400's next mortgage announcement with great interest.