Trending Financial News 27 August

New bank 86 400 is now up and running

Neo bank 86 400 is offering services to the public just five weeks after securing a full banking license. Other new entrants to the Australian banking market, Xinja Bank needed around six months after being licenced to be up and running, while volt bank is rumoured to be entering the market in September, eight months after earning a full banking licence.

Named for the 86,400 seconds in a day and backed by credit union service company Cuscal this new entrant provides an alternative to Bendigo’s Up digital banking brand. Bendigo Bank’s managing director Marnie Baker said Up was responsible for a surge of new customers to Bendigo in the last year.

86 400’s Save account has a great rate

New online bank 86 400 is launching a new competitive, but not market leading, savings account called Save. The Save account has a maximum interest rate of 2.5 per cent (subject to a monthly deposit minimum of A$1,000) paid on balances up to $100,000, including a base rate of 0.4 per cent.

86 400 also has a transaction account called Pay which has no interest and no fees.

The 86 400 mobile phone app encourages users to “connect bank accounts, credit cards, home loans and more”.

Bad banks and lenders will be named and shamed

The Australian Financial Complaints Authority has been granted the power to name and shame banks and other financial service providers.

AFCA said the move was part of its commitment to being “open, transparent and accountable to the public”.

Some financial institutions have opposed the change arguing that “naming and shaming … is likely to cause inappropriate and unfair commercial damage.” \

Auswide is going national

Queensland based Auswide Bank reported a big increase in home loan market share and customer deposits during the financial year ended 30 June 2019.

Auswide’s home loan sales were worth $616 million in the year to June, up 13.3 per cent over the previous year.  24 per cent of the Auswide lending portfolio is now outside Queensland.

Customer deposits grew 12.6 per cent to $2.4 billion.

In February Auswide launched an online personal loan application service called Apply Now. Auswide will extend Apply Now to applications for term deposits, transaction accounts and savings accounts this financial year.

Home Reno Fever hits Australia

An historically high number of detached homes in Australia are now approaching 30 years old said economist Shane Garrett of the Master Builders Association.

That means they probably need at least a new kitchen or bathroom and possibly a complete makeover.

“Our forecasts envisage that the market for major home renovations will grow from $8.97 billion in 2018/19 to $9.38 billion in 2023/24.”

Home renovations typically cost thousands of dollars. Even a bargain basement room makeover can cost many hundreds of dollars. Read more about how to pay for a home renovation project.

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