Liz Main from The AFR announced that the Australian Prudential Regulation Authority gave the mobile-based neobank a restricted banking licence on Tuesday, which means it can start accepting deposits of up to $250,000 from customers and can hold up to $2 million in deposits.
Liz points out Xinja can also officially call itself a bank in Australia. CEO Eric Wilson says Xinja aims to start offering full transactional bank accounts and more home loans next year if it obtains approvals from APRA.
Eric said Xinja would welcome other competitors. “We don’t want to be the only ones in the market. We’d like four or five of us out there. The more the better to revolutionise this industry,”
“There is no better silver bullet for these kinds of problems other than ethical competition.”
– CEO Eric Wilson
Xinja has so far raised $2.7 million by crowdfunding from 1200 retail investors via the Equitise platform. The neobank plans to launch a second round of equity crowdfunding in January 2019.
XINJA™ (Xinja Bank Limited ACN 618 937 054) is authorised by the Australian Prudential Regulation Authority (APRA) to operate under a Restricted Authorised Deposit-taking Institution (RADI) licence until 16th December 2020. Under this licence we are not required to meet the full ADI prudential framework. We will only offer bank accounts to the general public when we become a full ADI. You can still apply for other Xinja products. More information about Xinja’s RADI licence is available at xinja.com.au/legal