Xinja forgo their banking dreams
Xinja forgo their banking dreams
17 December 2020 6:20AM
In the end, the exit of Xinja Bank from the industry will be handled in good order, with all banking services terminated and all depositor funds returned by 15 January 2021.
Rumours that the board of Xinja would either sell the deposit book and client list or hand back its licence have been rife for weeks.
Early yesterday morning, Xinja announced it “will be exiting from banking business and returning its ADI licence” (effectively stopping being a bank).
“Xinja has decided to discontinue the Xinja Bank Account, Stash Account and all services relating to these products, in order to focus on other areas such as its US share trading product, Dabble, should circumstances allow,” the bank told clients.
Xinja has announced on Wednesday it is bowing out of banking for good.
The neobank released a statement to customers, saying it would return all deposits before shutting down its bank accounts.
It suggested it may persist with its US share trading platform Dabble, “if circumstances allow”.
One of Australia’s first neobanks is shutting down, scarcely more a year after launching.
Xinja, which spearheaded the PR push for digital banking in Australia, announced on Wednesday that it would be bowing out of banking for good.
“Xinja has decided to discontinue the Xinja Bank Account, Stash Account and all services relating to these products,” the neobank said in a public statement.
Mortgage Business 16 December 2020
A neobank has announced its plans to return all funds to depositors and relinquish its ADI licence.
Xinja Bank, which was authorised to operate as a restricted ADI in December 2018 and was granted a full banking licence by the Australian Prudential Regulation Authority (APRA) in September last year, has announced plans to withdraw its transaction and savings account products and return its authorised deposit-taking institution (ADI) licence.
“After a year marked by COVID-19 and an increasingly difficult capital-raising environment, and following a review of the market in Australia, Xinja has decided to withdraw the bank account and Stash (savings) account and cease being a bank. This was an incredibly hard decision,” Xinja said in a statement.