Digital Challenger Bank Xinja Receives Banking License, Preps to Return to Equitise for Second Crowdfunding Round

Merry Christmas, Xinja.

In January of 2018, Xinja became the first retail equity crowdfunding offer in Australia following an update to rules. Xinja, a digital challenger bank, went on to raise $2.4 million in a solid “proof of concept” offering that was part of larger $10 million series B funding round.

Digital banks and crowdfunding have been an enormous hit in the most vibrant crowdfunding market in the world – Great Britain. Several successfully crowdfunded digital banks have gone on to become fabled Fintech unicorns such as the globally ambitious Revolut.

Xinja just announced some really big news. In a blog post, Xinja shared they really are a bank:

We are stoked to announce that the Australian Prudential Regulation Authority (APRA), has granted Xinja Restricted Authorised Deposit-Taking Institution status. In shorthand, that means we are a bank, operating under a restricted licence. This is a bit like an ‘L plates’ system for new banks, but to find out more about what a RADI or restricted banking licence is, do click here.

Xinja plans to allow consumers to start opening accounts in Q2 of 2019. Timing is dependent on the whims of the regulator.

Pitched as an “independent, 100% digital neobank for Australians. Designed for mobile – made for people,” mobile friendly banking is a sweet spot for Fintechs and crowdfunding together.

Consumers really do not need to visit and queue at bank branches any more. Traditional banks are loathe to shutter these branches.

Add to this the fact that many traditional banks still use Cobalt powered green screen tech combined with a culture that is risk averse and you have a perfect marriage demand and opportunity.

Banking services are something we all need. We just need them differently than we used to.

Earlier this month, it was revealed that Xinja will be returning to Equitise for round two. Bank license in hand, it would be suprising if the securities offer did not go well. The first crowdfunding round hit the minimum of $500,000 from 269 investors within 18 hours of the public launch. By the end of the week 501 investors pushed this amount to $1 million.

Deal terms are not available yet but the offer is expected to go live soon. You can sign up here and be notified by email when the offer is live.


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