Australia Issues Full License to Digital-Only Xinja Bank
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Independent internet-only Xinja Bank was granted full banking license by Australian regulators, furthering the growth of digital banking in the Asia Pacific region.
We want people to have a real alternative to the incumbent banks, said Xinja Bank CEO and founder Eric Wilson in a statement, referring to major dominance of Australia’s Big Four banks: Commonwealth Bank of Australia (CBA), Westpac Banking Corporation, Australia and New Zealand Banking (ANZ) Group, and National Australia Bank (NAB).
Prior to this approval, Xinja a restricted banking license. Following the new license approval, Xinja will develop its business beginning with pre-paid cards; to bank accounts; and then lending in the first quarter of 2020.
Xinja enters the market under the oversight of a more proactive Australian Prudential Regulation Authority (APRA), which granted its first banking license to an internet-only startup Volt Bank. Other digital players to join include Judobank and «86 400».
Questions & Answers
Q.What business areas will Xinja Bank focus on initially after receiving its full license?
What business areas will Xinja Bank focus on initially after receiving its full license?
Xinja Bank will begin by developing pre-paid cards. Following this, it plans to introduce bank accounts and then move into offering lending services during the first quarter of 2020.
Q.How does Xinja Bank's CEO view the company's role in the Australian banking market?
How does Xinja Bank's CEO view the company's role in the Australian banking market?
Xinja Bank's CEO, Eric Wilson, stated that the company aims to provide a genuine alternative for customers to the established major banks. He specifically referenced the dominance of Australia's 'Big Four' banks.
Q.Which other digital banks have entered the Australian market under APRA's supervision?
Which other digital banks have entered the Australian market under APRA's supervision?
Volt Bank was the first internet-only startup to receive a banking license from APRA. Other digital players mentioned as joining the market include Judobank and '86 400'.
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