Borrow
Aussie neobank gains full bank status
An independent and 100 per cent digital bank offering has been granted a full banking licence by the Australian Prudential Regulation Authority (APRA).
Aussie neobank gains full bank status
An independent and 100 per cent digital bank offering has been granted a full banking licence by the Australian Prudential Regulation Authority (APRA).
Xinja Bank, first launched in May 2017, today announced that it has now been able to open transaction accounts to early customers.
APRA also released a statement on the approval, noting it had granted Xinja Bank Ltd “a licence to operate as an authorized deposit-taking institution (ADI) without restrictions under the Banking Act 1959.
The bank’s chief executive and founder, Eric Wilson, called it “enormously exciting that Australians have a new, independent bank”.
“It’s time Australia’s very old banking model was disrupted,” he commented.
According to Mr Wilson, the bank is 100 per cent digital and aims to give people “a real alternative to the incumbent banks”.
“We want to give customers a real choice to be able to be with a bank that looks after them,” he said.
The new transaction accounts being rolled out from today are accessed solely via the new Xinja app and come with a Xinja debit Mastercard ®, it’s been reported.
Savings accounts will be offered soon, with lending products added in the first quarter of 2020, “as well as some other fun, ‘unbanky’ surprises”, Mr Wilson added.
Customers already using the bank’s prepaid card system and individuals on the waitlist will be the first to be able to access Xinja’s new accounts.
Mr Wilson said, “This is what banking should be. Hyper-personalised services that leverage customers’ data in their interests.”
According to a statement from the bank, having zero legacy systems and using state-of-the-art technology gives Xinja Bank “a massive advantage over both traditional and Australian digital banks”.
It’s reported as being the only 100 per cent cloud-based bank in Australia.
“We don’t have bricks and mortar branches or old technology that we are constantly patching to meet the needs of customers,” Mr Wilson said, noting costs as significantly lower than traditional banks.
Xinja Bank was first granted a restricted banking licence (restricted ADI) in December 2018, and said it worked with regulators to meet the stringent requirements needed to then obtain its full licence.
RELATED ARTICLES
About the author
About the author
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more
Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more
Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more
Banking
Open Banking data proves superior to screen scraping, Frollo study reveals
Frollo, a leading Open Banking provider in Australia, has published a study demonstrating the superior quality of data obtained through Open Banking compared to traditional screen scraping methods, ...Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Hawkish central bank expectations dampen market sentiment, boosting dollar
Recent economic data and central bank communications have dampened the market's appetite for risk assets, leading to a stronger US dollar and a pullback in commodities and equities, according to Ipek ...Read more
Banking
Bank of England expected to provide guidance on future rate cuts at today's MPC meeting
European and UK stocks are outperforming their US counterparts due to a combination of factors, including high valuations in the US, strong corporate earnings from European companies, and expectations ...Read more
Banking
Investors advised to prepare for central bank policy divergence, says deVere CEO
The Bank of England, European Central Bank (ECB), and US Federal Reserve are set to take different paths in their monetary policies, which will significantly impact investors around the world, ...Read more
Banking
Open Banking data proves superior to screen scraping, Frollo study reveals
Frollo, a leading Open Banking provider in Australia, has published a study demonstrating the superior quality of data obtained through Open Banking compared to traditional screen scraping methods, ...Read more
