Lindley Edwards is the Chair of Xinja Bank and a passionate advocate for financial literacy.
Building a bank – the lean start-up way?
So prevailing wisdom on building a new venture these days is you start, learn, and adapt as you go. This allows the business to consider market responses as it deploys and executes, embracing continual improvements and market led adjustments in an ongoing validation process. This approach (ie: ”lean start up” methodology so named after Eric Ries’ bestselling book) improves the chances of success, reduces capital costs and ensures that any adjustments are made early and often. So far, so good.
A huge shout out to the Xinja Bank investors for their continued faith!
Building a bank….with the brakes on
However, one of the challenges of building an Australian bank is that firstly you have to build it, then allow the Australian Prudential Regulation Authority (APRA) to do its job and make sure that the business complies with regulatory requirements and then, only when these hurdles are met, can you ask customers to come. Quite rightly, APRA needs to make sure you’re completely robust before you get out the gate. Such an approach requires loyal and supportive shareholders who continue to believe in the vision and to invest to allow the business to get to the stage of asking customers to join. A huge shout out to the Xinja Bank investors for their continued faith and active support of ongoing investment and encouragement. We would not be here without you, and the Board, Eric, the Xinja team and I thank you very much.
In the past 3 weeks we’ve received approximately 85% of our whole year’s savings deposit budget
Off to a flying start
We’re humbled to advise that the market response to the launch of our bank account and savings account ‘Stash’ is very positive. This is a key milestone to achieve and in the past 3 weeks we’ve received approximately 85% of our whole year’s savings deposit budget. We are humbled by this reaction which makes us the fastest growing neobank in Australia. A hearty welcome to all our new customers; we’re delighted to have you as part of our Xinja community.
In many sections of our community there is a sense of despair around financial matters.
Addressing the money angst
We have exciting new innovations in the works, and these will be rolled out in a systematic way. Core to what we are doing is to not only provide a better, more ethical and frictionless service but to focus on making the average Aussie better off and help everyone achieve a sense of financial well-being.
In many sections of our community there is a sense of despair around financial matters. A recently released research study commissioned by ING showed that almost two thirds (61%) of working Australians are in debt, outside of home loans. It shows that a quarter of the population and half of millennials are ignoring their debt because they don’t want to talk about it. Australians feel “anxious” (47%) and “embarrassed” (38%) about the subject. For 61% of us, we would rather discuss anything else, including very personal matters, than talk about debt troubles. Adding to the embarrassment and despair over debt is that 37% do not know what to do to get out of debt or even manage it and 38% of us think that we will never get out of debt.
“Ours is not a caravan of despair”
Making money better, whoever you are
Launching our loans products and innovations in this area will be important as we want to alleviate some of this distress and despair in our community and help people help themselves. So welcome one and all! If you’re pretty good with your money, but want to make it easier, or you procrastinate in dealing with it; if your money’s in a mess or the thought of it fills you with guilt or fear for the future, we are pumped to be of assistance. As a wise old poet (Rumi) once said, ‘ours is not a caravan of despair’.
We continue to welcome your feedback, thoughts, suggestions and referrals. Xinja is being built for you and we want to stay true to building it with you. Let’s go!