Xinja

Xinja was an Australian bank. Founded in 2017 as a fintech company by CEO Eric Wilson, Xinja was granted a full banking license by the Australian Prudential Regulation Authority in 2019.[1] Xinja was the second Australian neobank to be made an authorised deposit-taking institution.[2] The company exited banking in December 2020 and returned to its original business in fintech.  

Xinja Bank Limited
Xinja
Industry
Headquarters77 King Street, Sydney
Key people
  • Eric Wilson (CEO)
Websitewww.xinja.com.au

History

Xinja entered fintech in 2017, offering products like prepaid cards and a money management app. In 2018, the company raised several million dollars via crowdfunding to develop its neobanking facilities.[3] On 9 September 2019, Xinja was granted a banking licence by the Australian Prudential Regulation Authority. On 15 January 2020, the company launched transaction and savings accounts using the BSB 775-775. By March 2020, Xinja had banked more than A$400,000,000 in deposits across its savings accounts.[4]

In March 2020, the Dubai-based World Investments agreed to make a A$433,000,000 investment in Xinja. It was first reported that complications caused by the onsetting COVID pandemic obstructed the investment and undermined Xinja's banking business.[5] In December 2020, Xinja announced that it would return its banking licence and return all deposits, ceasing to operate as a bank in Australia, though continuing its fintech business. By this stage, Xinja had expended A$98,400,000 of shareholder capital. In January 2021, 9 months after international media had announced the deal, the CEO of World Investments claimed that this deal was never finalised, as World Investments were awaiting the advice of lawyers and cyber security firms they had engaged to probe Xinja as part of its due diligence.[6] World Investments further claimed that Defensury, a cyber security advisory firm from Las Vegas warned it of red flags concerning Xinja’s technology, including security risks that could potentially expose customers to cyber attacks.[7]

References
  1. "APRA grants new authorised deposit-taking institution licence to Xinja Bank". APRA. Retrieved 9 September 2019.
  2. Tesfaye, Mekebeb. "Xinja is now the second neobank to receive a Restricted ADI license". Business Insider. Retrieved 31 December 2018.
  3. Main, Liz. "Xinja: Meet Australia's first crowdfunded bank". Australian Financial Review. Retrieved 31 December 2018.
  4. "False promises and the story of Xinja's decision to exit banking". Sydney Morning Herald. Retrieved 30 December 2020.
  5. Eyers, James. "The Sheikhs behind the Dubai Xinja Bank plunge". The Australian Financial Review. Retrieved 16 April 2020.
  6. https://www.smh.com.au/business/banking-and-finance/world-investments-ceo-casts-doubt-on-433m-xinja-deal-20210121-p56vqy.html
  7. https://www.smh.com.au/business/banking-and-finance/claims-xinja-investors-spooked-after-red-flags-in-cyber-security-audit-20210120-p56vg8.html
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