A statement from the company said apps for 86 400 would be available shortly in both the Apple and Android stores. The bank is yet to announce a date when it would launch.
In January, APRA granted an ADI licence to Volt Bank.
Chief executive Robert Bell said: "For the last two years, we’ve been busy building a smarter alternative to how Australians bank. Today’s news confirms we’ve passed all of the necessary checks and balances required to call ourselves a bank.
“I’m so proud of our team for all the work that’s gone into getting us to this point — but we’re only just getting started.”
The interface of the 86 400 app. Supplied
The company said customers would be able to open accounts in a couple of minutes with real-time payments through Osko. From launch onwards, customers will have access to Apple Pay, Google Pay, Samsung Pay, as well as FitBit Pay and Garmin Pay, along with a Visa debit card, ATM access and customer support.
The bank's chairman, Anthony Thomson, said: "From early on, we’ve been incredibly confident that what we’re building will offer Australians a smarter alternative to the Big Four banks.
"Smart tech is everywhere: smartphones, smart cars and even smart homes. They exist to make our lives easier and more convenient. But when it comes to managing our finances, these same benefits haven’t been available to us until now. Designed for smartphones, our smartbank will help people take control of their money, offering far more than they'd expect from a bank."
Thomson, who has founded and chairs two successful challenger banks in Britain, added: “With the latest technology, a simpler operating structure and streamlined systems and processes, we’ll be able to make savings that are passed on to our customers, and better returns for our investors. To get APRA’s approval today is a testament to the incredible work of the 86 400 team over the past two years.”