Australian digital bank Xinja announced on Wednesday it received its Australian Credit Licence (ACL) from the Australian Securities and Investments Commission (ASIC). According to Xinja, the license is a significant step forward for the bank, as it will now be able to offer home loans, which it is planning to do in the next few months. The bank revealed that the license comes just as it is preparing to launch of its first product to market, the Xinja app and prepaid card, which will start to be distributed from the end of this month.
While sharing details about the license, Xinja Chief Executive, Eric Wilson, stated:
“We are delighted to receive the ACL from ASIC as the first of three licenses we have applied for. Home loans are a key part of our business plan, and this will allow us to launch those on schedule.”
Wilson also reported that Xinja’s launch strategy has been driven by its launch of Australia’s first equity crowdfunding offer, via the Equities platform, in January 2018. The funding round secured $500,000 in the first 24 hours, over $1 million in a week and is currently at more than $1.4 million. Wilson remarked:
“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.”
Xinja 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 Authorized Deposit-taking Institution (RADI). Xinja Chief Risk Officer, David Nichols, added:
“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.”