The neobank was first launched in May 2017 and obtained a restricted ADI from the prudential regulator in December 2018.
The 100% digital bank already has products in the market, including a prepaid card and an app with bank accounts launching from today.
Chief executive and founder Eric Wilson said the made-for-mobile bank was here to disrupt old-school banking.
“It’s extremely exciting that Australians will have a new independent bank. It’s time for Australia’s very old banking model to be shaken up,” Mr Wilson said.
Mr Wilson said the granting of the license meant Xinja was the first independent Australian neobank to obtain a license and open an account.
It is of course not the first neobank to obtain an ADI from APRA, with Volt being the first to obtain a license in January, but it does not yet have any products in the market.
The neobank 86 400 also obtained a full ADI a few months ago, the bank having chosen not to take the route of a RADI, but to obtain a full license directly.
“Congratulations to the Xinja team on being licensed. We believe greater choice is good news for Australians and the banking industry as a whole,” said Robert Bell, CEO of 86 400.
86,400, like Xinja, also did a soft launch of their products by allowing access to early birds who had registered, but they have just launched both a transaction account and a savings account for the general public.
“Thousands of people are already using 86,400’s comprehensive transaction and savings accounts, after signing up to our early access waiting list. We finished inviting waitlisted customers last week and the launch is imminent nationwide, meaning anyone in Australia can sign up and experience our smarter approach to banking, in just 120 seconds,” Mr. Bell said.
Mr Wilson said the bank would make its accounts public, but the first to access them would be existing prepaid card customers and anyone already on the waiting list.
“We’re starting on our waiting list that we’ve built, we’ve had some very patient customers and we’re starting there and we’re going to ramp that up over time.
“We’re going to work to get people signed up instantly, but as a new bank we have to take it nice and slow and control the numbers that come in very carefully,” Mr Wilson said.
The transaction accounts launched today are accessible through the app and come with a Xinja Debit Mastercard and the neobank will soon launch ‘Stash’, which is its savings account.
“We need to make sure we master each product as we go, and the bank account is probably the most complex of all, so we’re launching that one first. We’ll be building in more features, like a bank account. savings, and Then we’ll ramp up a little bit So an overdraft early next year, personal loans in the first quarter, and then mortgages at the end of this quarter into the second quarter,” Mr Wilson said. .
Mr Wilson said he plans to add loan products in the first quarter of 2020 as well as other “unbanked” surprises.
“Xinja is a bank built for purpose and for profit, but we have purpose, which means we have to do things like track whether our users are doing better since they joined us and how much speed we can get them out of debt. We don’t have to tell people how good we are, we have to do it over and over again,” he said.
Neobank Douough CEO Andy Taylor congratulated Xinja and said the more new entrants into the market, the better.
“The first wave of new banking players gives Australian consumers more choice but does not solve financial wellbeing issues,” he said.
Mr Taylor said Xinja was able to inform the market about the financial products available, but he was concerned that none of the new banks would disrupt the underlying issues.
“We need to change the business model and create technology that changes consumer behavior and creates better financial habits. It cannot simply be about improving the pricing of traditional banking products, as this does not create better engagement or improve overall financial well-being,” he said.
