Xinja receives restricted banking licence from APRA
The restricted licence will allow Xinja to expand its product range and start accepting deposits.
Today, Xinja has become the second digital neobank to receive a restricted banking licence from the Australian Prudential Regulatory Authority (APRA). The new licence framework was announced by APRA in May 2018 and allows for financial firms to conduct restricted banking business, which includes accepting deposits, for two years while they build their capabilities and resources. The first recipient of the restricted licence was Volt Bank.
While Volt Bank is yet to release any products, Xinja has a prepaid card already in the market and a home loan available to family and friends. According to Xinja, it has more than 22,000 customers signed up and its prepaid card and app is being used in more than 70 countries. Other digital neobanks have also started up in the market or announced their intention to but are partnering with financial institutions that are already licensed or operating under the licence of an authorised deposit-taking institution (ADI) until they are approved for a licence of their own.
On the receipt of its banking licence, Xinja co-founder and CEO Eric Wilson said it confirms their belief that Xinja represents a new way of banking in Australia.
"It brings us one step closer to fulfilling our purpose, which is to help people make more out of their money," he said. "Xinja is all about making banking easy, frictionless and even fun so that people can make better, faster money decisions without the angst."
Having been awarded the licence, Xinja will be allowed to hold up to $2 million in deposits of less than $250,000 each. According to Xinja's website, it is currently building a transaction and savings account which it plans to roll out in Q2 2019. It also plans to add more artificial intelligence to its app, which customers will be able to manage all of their products through, to make the features more tailored.
According to Xinja chair Lindley Edwards, the bank relies on customer feedback when building its products.
"We have built Xinja from the ground up, which means we have listened to people who want to bank with us and used their feedback to help us build a better bank," she said.
You can find out more about Xinja's products and compare offerings from other neobanks in our digital bank comparison guide.
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