NAB buys neobank 86 400 in $220m deal

National Australia Bank is buying the neobank 86 400 as it looks to ramp up growth through its offshoot UBank, in a $220 million deal that it says will enhance its digital banking offer.

NAB told the ASX on Friday morning it had entered into a deal to acquire all of the shares of 86 400, which was founded by payments business Cuscal, and that 86 400′s independent directors had unanimously recommended the deal.

The acquisition comes months after another neobank hopeful, Xinja, was forced to return deposits to customers after it failed to raise the capital it needed to continue operating.

More to come