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Australian FinTech Startup Xinja Bank Changes History

SYDNEY, Australia – Xinja Bank, an Australian FinTech startup, is changing the industry history as it receives more investment from prominent organizations.

The FinTech startup announced through a press release that it received a new wave of investments. Now, it’s from World Investments (WI), which is a known organization based in Dubai. Based on the statement from Xinja Bank, the new cash influx from WI is worth around $433 million.

In the new investment, WI will pay one lump sum worth $160 million to Xinja Bank. Meanwhile, they will give the remaining amount to the Australian startup in instalments, payable for the next two years. This recent deal represents a groundbreaking achievement that no other FinTech startup in Australia has ever made in history.

The founder and chief executive of Xinja Bank, Eric Wilson, proclaimed that the investment from WI marks a landmark success for the startup.

He said in a statement that Xinja Bank thinks that the investment deal with WI is the most significant single venture for any startup or neobank in the country. With this recent achievement, along with the massive deposit growth and customer acquisition of Xinja Bank, it is now at the forefront in the neobank space in Australia.

Xinja Bank secured the investment deal with WI through the help of First Penny Investments more than two years ago. Both Mr Wilson and Wi expressed their appreciation to Yaser Mansour and Michael Gale, executive directors of First Penny Investments, for their help.

Xinja Bank continues to stir the pot when it comes to financing. It is a reasonably new company in the industry but is becoming the frontrunner, even only a few years after its launch. The Australian FinTech startup started in May 2017, only less than three years ago.

In September 2019, Xinja Bank received its full banking license. The startup also launched a prepaid card and the first app before launching Stash, its savings account, and offering transaction accounts to clients.

The Stash savings account of the startup also took off like a rocket, attracting more than $400 million worth of deposits in less than eight weeks after launching.

From there, Xinja Bank is now the talk of the town and is continuing for better ways to take the top position. Right now, the startup holds more than 45,000 accounts and has over $450 million amount in deposits.

According to Mr Wilson, the achievements of Xinja Bank is unlike any other startup in the country. He said that their success is primarily because of the latest technology that they are using and no expensive old-school IT systems to patch and maintain like in traditional banks.

Xinja Bank is among the neobanks in the country that aims to revolutionize the banking experience for all customers. They are working towards providing straightforward and less tedious processes for people who want better ways to track their finances, spending, and their savings. Xinja Bank also features tons of services such as offering suggestions to their customers on how to maximize their incomes.

He also said that with the operation costs in Xinja Bank remaining low, they could offer the lowest savings rates to all their customers.

Xinja Bank is a fully digital platform, similar to the likes of Starling Bank and Monzo. The startup has coverage from the Financial Claims Scheme of the Government of Australia. And similar to other traditional and digital banks, deposits in Xinja Bank up to $250,000 are fully protected.

Commenting on the deal with WI, the Australian FinTech startup said it is grateful to the organization for acknowledging Xinja Bank and the modernized potential it can provide clients. The company also said that they are glad that WI recognized Australia’s aspirations when it comes to modernizing banking experiences for all its customers.

Mr Wilson also said about WI that it is an organization that embodies smart money. He said that World Investments could provide Xinja Bank both in-depth knowledge and skills when it comes to banking, which can help them prosper further, according to him.

Zayed bin Rashid Al Qubaisi, the chief executive of WI, also commented that they believe in the potential of Xinja Bank. He said that the Australian startup is currently at the forefront of the country’s next-generation banking industry.

The WI CEO further stated that the main reason for them choosing to invest in Xinja Bank is the startup’s impressive technology, ethical banking philosophies, and its commitment to provide the best customer service.

World Investments is based in Dubai and is well-known for its extensive experience inside the banking industry. According to the recent press release, among the investment deal with WI in the banking world includes those in Europe and the Middle East.

With the new WI investment deal and Xinja Bank in the cutting edge of the neobank and startup industry in Australia, it has all the reason to celebrate. However, Mr Wilson took a more subdued tone, especially with the ongoing health crisis in Australia. The disruption in the country’s economy and life due to the spreading coronavirus was enough to temper the otherwise landmark achievement of the company.

Instead of a huge celebration, Xinja Bank aims to help Australians during this difficult time. Mr Wilson said that they know that Australians right now are getting concerned not only of their health but also their financial security. So, he said, Xinja Bank will extend their services to everyone who needs financial assistance.

Mr Wilson said that he believes that the primary mission of Xinja Bank is to provide help to Australians when it comes to making more of their assets. He noted that maximizing their money will be even more critical for the people in the coming year as they try to recover from the impacts of the virus.

The CEO of the Australian FinTech startup believed that Xinja Bank is only a tiny part of the country’s economy. However, according to him, they commit to continuing to provide the best modernize banking opportunities and outcomes for all their clients.

Aside from its current savings account products, the Australian FinTech startup is also looking forward to providing its customers home loan, and personal loan offers before the year ends.

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callum

Aussie copywriter from Melbourne's Dandenong Ranges, passionate about all things lifestyle - particularly Finance.

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