Xinja BankAustralian neobank Xinja Bank has received a full banking licence from the country’s financial regulator and has opened bank accounts for early customers.

The Australian Prudential Regulation Authority (APRA) has granted Xinja its full banking licence, the bank said in a statement on Monday.

“It’s enormously exciting that Australians have a new, independent bank,” said Chief Executive and Founder, Eric Wilson. “It’s time Australia’s very old banking model was disrupted.

“We are 100% digital, and we want people to have a real alternative to the incumbent banks… From today, we’re rolling out bank accounts to customers.”

The new transaction accounts that were launched on Monday can be accessed solely via the new Xinja app and comes with a Xinja Debit Mastercard. It is also planning to launch a savings account which will be called ‘stash’ and add lending products in the first quarter of 2020.

Xinja was designed for mobile phones with a vision to shake-up Australia’s traditional banking sector.

“We don’t have bricks and mortar branches or old technology that we are constantly patching to meet the needs of customers,” Wilson said. “Our costs will be significantly lower than traditional banks.”

“We’ll use technology and data to prompt money mindfulness; nudging people toward better everyday behaviour that can improve their finances.”

Launched in May 2017, the neobank has raised more than $5 million through equity crowdfunding campaigns. It has raised a further $45 million from private and institutional investors. It was granted a restricted banking licence in December 2018 and was working with regulators to meet requirements to obtain a full licence.

by Krishna V Kurup
Senior Market Analyst at IBS Intelligence