● Prepaid rolling out from the end of this month, home loans in a few months
● Australia’s first equity crowdfunding on track, due to close March 31
Xinja, who is building the first Australian, independent digital ‘neobank’, has been granted its Australian Credit Licence (ACL) from the Australian Securities and Investments Commission (ASIC).
The licence is a significant step forward for Xinja as it will now be able to offer home loans, which it is planning to do in the next few months.
This occurs at a time when Xinja is bringing its first product to market, the Xinja app and prepaid card, which will start to be distributed from the end of this month.
“We are delighted to receive the ACL from ASIC as the first of three licences we have applied for. Home loans are a key part of our business plan, and this will allow us to launch those on schedule,” said Xinja Chief Executive Eric Wilson.
Mr Wilson said Xinja’s launch strategy has been spurred on by its launch of Australia’s first equity crowdfunding offer*, via the Equitise platform, in January 2018. This raised $500,000 in the first 24 hours, more than $1 million in a week and is currently at over $1.4 million.
“We have been so excited and humbled by the response to the equity crowdfunding offer, which has significantly exceeded our expectations. It is indicative of the appetite for a new banking experience in Australia, and part of our intention has always been that Xinja customers could own a piece of the action,” Mr Wilson said.
He said investors have been informed about the granting of the ACL as this is a material market update.
The ACL is one of three licences sought by Xinja. It has also applied for an Australian Financial Services Licence (AFSL) from ASIC and applied in 2017 to Australian Prudential Regulation Authority (APRA) for a banking licence which will allow Xinja to become a Restricted Authorised Deposit-taking Institution (RADI).
Xinja Chief Risk Officer, David Nichols, noted the robust and comprehensive process Xinja went through to obtain the ACL. “We are fortunate to be entering a highly regulated financial services sector and look forward to contributing to this regulatory landscape in a positive way,” Mr Nichols said.
Mr Nichols also acknowledged the ASIC Innovation Hub’s continuing open and proactive approach, noting this has become a truly global benchmark for how regulators can interact with innovative businesses.
Xinja is building Australia’s first independent, 100% digital bank designed entirely for mobile. It is a radically new banking experience built with the community around their needs and in their interests,. Xinja will make it quick, easy and even fun for customers to track spending, save for what they want, and just get a lot more out of their money. Unlike incumbent banks, Xinja doesn’t have branches or expensive legacy systems which means lower costs & so competitive rates & low fees for customers. Furthermore, the products are being designed to help people get ahead; if customers do well, Xinja does well too.
*Like any investment, Crowd-Sourced Funding (CSF) is risky. Investors may lose their money and the business may not achieve its objectives. You should consider the CSF offer document and the general CSF risk warning contained in the offer document in deciding whether to apply under the offer.