Digital challenger bank Xinja Bank is set to roll out banking accounts for its customers after being granted a full banking licence from the Australian Prudential Regulation Authority (APRA).
With the banking license, the neobank has joined the ranks of other new FinTech ventures that have set up banking enterprises in the continent recently. This includes the competitors Up and 86 400.
APRA gave Xinja Bank a restricted banking license in December 2018, a new form of license introduced earlier in the year to make it easier for new participants to come in and shake things up in the Australian banking sector. As FinTech Global has reported in the past, several new challenger banks have already taken advantage of this opportunity.
On the back of acquiring a banking licence, Xinja Bank has launched its first transaction accounts. It plans to roll out more services. However it that will not include a new credit card as the bank believes the only way to make money that way is when customers make bad decisions.
“It’s enormously exciting that Australians have a new, independent bank,” said Eric Wilson, CEO and founder of Xinja Bank. “It’s time Australia’s very old banking model was disrupted. We are 100% digital, and we want people to have 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. From today, we’re rolling out bank accounts to customers.”
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