MPA Brokers on Non-Banks 2021 - Brand Recognition
Accolades
Media
Milestones
2017
2018
2019
2020
2021
86 400 is founded by payments provider Cuscal Pty Ltd.
2017
Field testing of the beta 86 400 app is carried out; broker distribution group is set up.
2018
APRA grants licence to 86 400 to operate as an authorised deposit-taking institution. Everyday Banking accounts and first mortgage product are launched.
2019
National Australia Bank takes minority stake in 86 400.
2020
Direct-to-consumer mortgage product is launched. NAB fully acquires 86 400.
2021
No blueprint? No problem
For a legacy bank, launching something brand new just before the pandemic would probably have been a disaster. But for 86 400, a new player with a plan to make home loans paperless, the pandemic turned out to be an accelerant.
Head of broker distribution George Srbinovski came on board in November 2018, but the digital bank only went to market with a home loan product in late 2019. When COVID arrived a few months later, the radical paperless application system suddenly made a lot of sense.
“The pandemic came along, where you can't see anyone face-to-face any more, and you have to rely on this,” he says.
As a new player, 86 400 was able to pivot faster than most in other areas too.
Many of the current 15 business development managers on Srbinovski’s team, for example, were interviewed remotely and vetted for their ‘Zoom presence’ because it was clear that a lot of sales activity was going to happen remotely.
“We didn't have massive legacy systems where we couldn't work from home, so it really was amazing.”
Having people who were comfortable working remotely also dovetailed into helping brokers become more effective at using such tools.
While 2020 enabled the product to grow rapidly, Srbinovski always knew that he wanted to focus on a broker-first strategy and align with aggregators while providing a very high level of service. He says choosing to do things this way turned out to be one of the best decisions in building up the business when there were no models for success to rely on for the NAB-owned digital bank.
“You can look to others for inspiration, but there’s no manual for how to start a bank from scratch, how to start a distribution channel from scratch,” he says.
The product’s rapid acceptance by brokers and customers has pushed the boundaries of how a home loan can be executed, something he is very grateful for.
“[It shows] that you can be paperless and do home loans and still have that connection with the customer and have an amazing end product as well.”
While the pandemic was certainly a tailwind, Srbinovski says the success was not overnight, and a lot of footwork went into building momentum.
“We were just getting out there and talking to brokers and getting onto aggregator panels and getting brokers accredited and getting them used to the way we do we do loans,” he says.
Once the bank started accrediting brokers in more numbers, Srbinovski knew that the product was going to be a success. The team then started to receive strong testimonials and get feedback from brokers on how to improve the product, which he says was always being enhanced.
The momentum is continuing to grow in the current market as restrictions on movement ease and BDMs can attend face-to-face meetings.
“Whilst the digital medium has been absolutely amazing, nothing replaces a face-to-face meeting to build trust and rapport,” Srbinovski says.
86 400 is still at the growth stage in terms of enlarging its customer base, and Srbinovski is not worried about any possible headwinds on the horizon such as an increase in fixed rates or the effect of inflation on the economy.
“We're still a new player in the market, and for us it is still about getting out to seeing a lot more brokers to help them have an understanding of our process and why we do things.”
86 400 offers Pay As You Go (PAYG) finance and has a loan-to-value ratio as high as 85% with no lenders mortgage insurance needed, a product that Srbinovski says they push a lot.
“The only restraints around that are that it has to be an owner-occupied [principal and interest] loan.”
There are also new products coming for 86 400, but it is a case of watch this space for now.
Spotlight
86 400 joined the mortgage industry in November 2019, seven weeks after launching its Everyday Banking accounts, and has constantly grown. It is now partnered with over 80% of the broker market through major partnerships with key aggregator bodies. After spectacular growth in the last few years, 86 400 now has over 7,500 accredited brokers. In June 2021, it also launched into the direct-to-consumer market, offering an online application that can be completed in 15 to 20 minutes. 86 400’s home loan product suite has constantly improved, and now its mortgage settlements are sitting at over $1.5bn.
Company Profile
86 400
NUMBER OF SECONDS IN A DAY
Up to $250,000
Deposits guaranteed per account holder
~ 90,000
Number of customers
> 120
Number of employees
> 7,500
Number of accredited brokers
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
Years of experience
25
tenure IN current position
3.5 years
LEADERSHIP STYLE
Community and collaboration
George Srbinovski
Head of broker distribution at 86 400
George Srbinovski looks back on how digital bank 86 400 set out to break the mould on home loans and ride the pandemic into the future
Read on
“There’s no manual for how to start a bank from scratch, how to start a distribution channel from scratch”
George Srbinovski,
86 400
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Milestones
2011
2012
2015
2019
2021
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2011
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2012
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2015
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2019
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2021
No blueprint? No problem
Spotlight
Years of experience
25
Tenure IN current position
3.5 years
LEADERSHIP STYLE
Community and collaboration
Karen Adams
President and CEO at Fundserv
George Srbinovski looks back on how digital bank 86 400 set out to break the mould on home loans and ride the pandemic into the future
Read on
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Milestones
2011
2012
2015
2019
2021
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2011
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2012
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2015
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2019
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2021
Read on
George Srbinovski,
86 400
MPA Brokers on Non-Banks 2021 - Foreign Non-Residents
AMA 2021 Non-Bank of the Year Excellence Award
AMA 2021 Best Non-Major Bank BDM
George Srbinovski,
86 400
George Srbinovski,
86 400
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Srbinovski says being part of the NAB group will serve to underpin further growth at 86 400 as it seeks to step up from being a successful niche player to engaging in more mainstream role.
“We are definitely here to supercharge our growth and increase our reach to more brokers and more of their customers.
“We're up to 12 aggregator panels, and very much now it's just about working closely with those 12 aggregators and making sure that their members within those aggregators understand 86 400.”
Banking has been shaken up by the pandemic, Srbinovski says, and there is a quite a lot of competition from new and smaller players, especially in the non-bank lending space.
But he says 86 400 can handle anything the market throws at it.
“We definitely welcome all players in the digital space.”
Srbinovksi points to the speed at which technology is enabling new features, including digitally verifying income and expenses. Just three years ago, this kind of technology was seen as something far off in the future, but recently it has started to become the norm, he says.
Open banking is also going to bring a large number of advances in a short space of time and speed up the application process exponentially.
“What I'm most excited about is how fast can we make it in the future,” Srbinovski says.
Speeding up the process will give brokers more time to do the important work of staying abreast of the latest developments out in the field, where the opportunities to help businesses lie. He envisages a world in which brokers have ample time to do a deep dive with clients on what they want to achieve in the next five years, rather than spending their day filling out application forms and chasing documentation followed by a quick phone call.
“It's exciting to see what the future will hold on the digital mortgage front,” he says.
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“There’s no manual for how to start a bank from scratch, how to start a distribution channel from scratch”
“We are definitely here to supercharge our growth and increase our reach to more brokers and more of their customers”
“There’s no manual for how to start a bank from scratch, how to start a distribution channel from scratch”
“We are definitely here to supercharge our growth and increase our reach to more brokers and more of their customers”
“We are definitely here to supercharge our growth and increase our reach to more brokers and more of their customers”
CAREER HIGHLIGHT
"Without a doubt the work we are doing at 86 400, building a bank from scratch and working with our fabulous teams and brokers to bring something totally new to the market!"
"Without a doubt the work we are doing at 86 400, building a bank from scratch and working with our fabulous teams and brokers to bring something totally new to the market!"
LEADERSHIP STYLE
Community and collaboration
CAREER HIGHLIGHT
Tenure IN current position
3.5 years
IN PARTNERSHIP WITH