The license from the financial regulator allows the primarily mobile financial company to compete for deposits and use the funds to lend. Xinja will grow its product line from pre-paid cards into bank accounts, and plans to add lending products in the first quarter of 2020.
Australia’s deposit and lending market is dominated by Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group and National Australia Bank.
An inquiry by the country’s top economic adviser found that a lack of banking competition has been detrimental to customers. Online-only banks are just starting up in Asia, as non-banking firms seek to leverage their technology and user databases to challenge traditional banks in offering services to retail and small businesses.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now