With the license, the neobank will be able to offer home loans in the next few months, it app and prepaid card being distributed starting from the end of February 2018.
The ACL is the first of the three licenses the neobank has applied for. It has also applied for an Australian Financial Services Licence (AFSL) from ASIC and applied in 2017 to Australian Prudential Regulation Authority (APRA) for a banking licence which will allow it to become a restricted authorised deposit-taking institution (RADI).
In May 2017, Xinja raised AUS 2 million (USD 1.5 million) to launch a pre-paid debit card as a precursor to its neobank. In January 2018, it was part of Australia’s first equity crowdfunding offer, via the Equitise platform. This raised USD 500,000 in the first 24 hours, more than USD 1 million in a week and is currently at over USD 1.4 million. The offer is open until 31 March 2018, and is part of the second round raise of USD 10 million.
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