The Cuscal-backed digital only operation 86 400 has become Australia's newest bank, with APRA granting it a full ADI licence, and affording 86 400 an early advantage over its hopeful, neobank rivals.The bank has been entirely funded for the past two years by payments processor Cuscal, an ADI in its own right. APRA has allowed Cuscal a temporary exemption from the requirement that no single individual or shareholder should control more than 20 per cent of a bank, said Robert Bell, chief executive officer of 86 400. "We will progressively introduce new shareholders, with Morgan Stanley doing the next capital raising, and over time Cuscal's holdings will be progressively diluted [below 20 per cent]," he said.These new shareholders are expected to come on board "towards the end of 2019", as 86 400 aims to bolster its balance sheet by "more than A$250 million" in new capital over the first three years of operation. This will add firepower to a digital only bank, ambitious to take market share from the Big Four.Bell confirmed that 86 400 will focus "one hundred per cent" on the retail banking sector, delivering its products and entirely services via smart phones."In Australia there are about nine million bank customers who already predominantly do their banking by mobile phone," he said. "We will have a particular focus on the four million-plus segment of retail banking customers aged between 25 and 45 years."Bell said the 86 400 mobile only banking service has been in test mode by its staff for the past six months, and was ready to go live. He said the service will be available in app stores in "a few weeks' time", initially offered for those who have signed up for 86 400's waitlist.At launch, 86 400 will offer a Visa debit card, with customers able to access the New Payments Platform, along with a string of other digital payments systems: Apple Pay, Google Pay, Samsung Pay, FitBit Pay and Garmin Pay. The bank has also been linking up with mortgage aggregators, although home loans will not be in the first wave of offerings.