https://files.ozbargain.com.au/upload/56747/86550/ubank.jpg
UBank's phone and web apps are one of the worst I've used in a long time. Only with them for the low mortgage rates. Hopefully this acquisition improves the online experience.
UBank Is Acquiring 86 400
soan papdi on 29/01/2021 - 10:13
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Look like NAB getting a software upgrade so it can compete with Commbank for $220m. That's cheap.
I don't know how good 86 400 is but you make a very good point.
$220m acquisition but multi billion dollar integration.
Or just don't integrate it. Generally a start up is a lot leaner than the main bank, plus you really want to bring these people into the sweet union negotiated deals.
NAB's internet banking is stable but still not that great compared to ING or CBA. UBank would be using NAB's backend but I think their front end chops are still lagging.
I worked at NAB 5 years ago and their back end system was about 15 years out of date.
I heard about the NextGen project there which costed hundreds of millions but went nowhere.
@soan papdi: I got the impression they were hardly investing. They seem to spend very little (compared to CBA) on things like their app and website - they look good but the functionality is poor. Even when I worked at NAB, I refused to bank with them.
It is pretty hard to try to invest in say a 1980 Camry to bring it up to 2020 Camry levels of performance.
You actually need to build it again from scratch and migrate to the new system.
Having being in that space. People know their is more money to be made upgrading your current system (because so many problems come up) and scope keeps on changing than build it new and just migrate customers. Initial bill looks cheaper.
Legacy banks are the last ones to adopt new innovation. They would rather stick their heads in the sandbox and hope that fintech goes away than read the writing on the wall. Their hold on the money market is slowly being replaced by code.
Agree. But CBA seems to be ahead of the game compared to the other big 4.
Comparing the big four with each other isn't useful to consumers when they all lag behind fintech.
The only advantage legacy banks have is that they can legally lend money they don't have. Take that away and they will go out of business pretty quickly.
Ubank uses the a newish Oracle platform. I don't think NAB is on the same platform (or it least wasn't a few years ago)
Maybe UBank will finally get PayID yay
one can only hope.
Thats the reason I closed my uBank account to join 86400.
Lol
The neobank challenge didn't last long. First Xinja, now 86400.
Well, I highly doubt they intended to be around as a standalone bank for very long anyway. It was always clearly a bit of a software development aimed at being picked up and sold off to a larger fund. They didn't have the range of services needed to really survive in the sector on their own.
Got the below email from 86400. Apparently they are acquired by NAB. NAB also owns Ubank.
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HiToday, we have some exciting news to share: 86 400 is joining the NAB family, creating a smart digital bank committed to helping all Australians take control of their money.
From day one, our mission has been to strip the waste out of banking and give back to customers, and while we've already achieved so much, we're still just getting started.
With the backing of NAB, we'll be able to invest even more into developing smart products, experiences and customer service that will help you own your home faster and reach your goals sooner with smarter spending and saving.
What does this mean for you?
Day-to-day nothing changes, and you don't need to take any action. You'll continue to be an 86 400 customer, bank using the 86 400 app and make purchases with your physical 86 400 card or connected Apple Pay, Google Pay™, or Samsung Pay wallet.
You can also expect the same rapid rollout of smart products and features that you'll be used to as an 86 400 customer. Check out our public roadmap, where you can see what we're working on right now and vote for your favourites; 86400.com.au/roadmap
What happens next?
We have a few steps to go through before anything is formalised, but otherwise it's business as usual. 86 400 will continue to operate as a separate business from NAB, run by our dedicated team from our headquarters in Sydney.
Need more information?
You don't need to do anything, just continue to use your 86 400 accounts as normal. If you have any questions, please don't hesitate to give us a call. We're available Monday to Friday between 8am and 8pm (Sydney time) on 1300 086 400, or +61 2 9058 7486 if you're overseas.
Thanks again for your support - there are exciting times ahead and we're very glad to have you onboard for them.
Robert Bell,
86 400 CEO
For those with money in NAB & UBANK, but also in 86400, the total amount covered across all 3 for the Government Bank Guarantee is $250k once this goes through.
Interest was only earned on up to $50k in 86400.
the Financial Claims Scheme (FCS) which provides protection to depositors of up to $250,000 per account-holder per authorised deposit-taking institution (ADI) (bank, building society or credit union) in the event of the ADI failing.
From various reports on LinkedIn. UBank will be merged into 86400 tech stack (Data action), so 86400 features will be available on UBank (guessing 12-24months for integration)
For a bank that is only 18months old 86400 were great. Slick front end, push notifications, in app shared accounts, PayID, pay bills from savings accounts, bill predictions, dark mode.
But being so small you can go fast without too much red tape. Hopefully they will continue to be innovative and not get slowed down by old school bankers
You would think UBank could piggyback off the IT resources of ummm that small $80B bank that owns them.. you know the one.. name escapes me.. that's it- NAB.