More than 35% of the staff that joined NAB in the deal have left, with some citing culture clash
A large proportion of the staff at 86 400 has left since the digital bank’s $220 million takeover by National Australia Bank. About 50 people have left, with some citing a culture clash.
NAB’s acquisition of the digital bank was completed in May last year, but the staff exodus has continued into 2022, according to a report by The Australian. Sources told the publication that many of the resignations were due to the differences in culture between start-up 86 400 and the large incumbent.
“It’s a very different culture at NAB,” one person, speaking anonymously, told The Australian.
Nearly 140 employees of 86 400 went across to NAB in the acquisition, meaning the departures represent more than 35% of that intake.
86 400 head Robert Bell, whose exit was flagged by NAB, left after the transfer of 86 400’s banking business onto NAB’s licence, The Australian reported. Sources told the publication that 86 400 chief risk officer Guy Harding was also understood to be headed for the door. Head of lending Melissa Christy quit the bank last month to take a similar role at AMP.
Travis Tyler, product and marketing chief at 86 400, left NAB to join ASX-listed Zip, while financial planning and analysis manager Harman Shankar quit to join MA Financial. Andrew Ritchie, engineering manager for 86 400, left NAB last month to join Basiq, an open banking platform.
NAB is integrating 86 400 into its digital arm, UBank, using the start-up’s technology but doing away with its brand, The Australian reported. UBank, which has been filling the gaps left by the 86 400 exodus and growing the combined team, plans to refresh its own brand in the first half of the year.
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A UBank spokeswoman told The Australian that both UBank and 86 400 were “on trajectories of growth.”
“We are pleased with the progress we have made bringing them together and growing our team to support customers,” she said. “We have grown the 86 400 workforce by approximately 70%, and are welcoming dozens of fantastic new team members each month. Most of these joiners are in new roles, and some are replacing colleagues who are moving on to new opportunities. Staff change remains broadly consistent with previous years and industry experience.”
Regal Funds Management’s Mark Nathan told The Australian that there was always a risk of culture clash when a start-up integrated into a large bank.
“Big bank compliance and operating frameworks are geared to minimise risk, although the many checks and balances often stifle innovation,” Nathan said. “There is always the risk that a small, innovative company loses its edge in the bowels of a larger institution.”
