Neobank raises $2.6m in crowdfunding campaign

The neo lender, which currently holds a restricted banking licence and is in the midst of applying for a full banking licence, has reported that the majority of investors contributing to the $2.6 million raise aged between 24 and 44, with the largest spread (555 investors) aged between 25 and 34, closely followed by those aged between 35 and 44 (550 investors). 

According to Xinja, which is tailored to those banking digitally, this is the largest equity crowdfunding campaign raised on the Equitise crowdfunding platform in Australia, beating the $2.44 million set by Xinja in its first campaign this time last year.

Xinja announced that it now has 2,500 investors, with 1,500 investing in the second campaign and 1,222 in the 2018 campaign, and over 200 repeat investors in both rounds. 

Female investors participating in the latest equity crowdfunding campaign reportedly increased to 27 per cent, up from 17 per cent in the first 2018 round.   

Xinja shares were offered at $2.04 this year – up from $1.20 shares offered in the neobank’s first campaign – and the minimum parcel could be purchased at $255. 

Eric Wilson, chief executive and founder of Xinja Bank, said the results from the second crowdfunding campaign show that there is a shift away from the traditional banks given the considerable “dismay” among the public following the banking royal commission. 

“Australians deserve better,” he said. 

“The game-changer underway in the sector now is the recognition among the public that banking in the near future will be transformative and involve trust, partnerships, all digital innovation and some adventure as well. The best business model is to do the right thing by your customers.” 

Mr Wilson added: “This equity crowdfund campaign shows that Xinja’s call to shake up the banking sector resonates with many thousands of Australians. 

“We are developing Xinja and our products so that if our customers do well, so do we. And we aim to make banking fun; we think that if people find managing their money engaging, they are likely to get better at it,” he continued. 

“We are delighted by the response to the campaign. It’s up to Xinja to show what we can do by providing a new and inclusive way of banking for people who are fed up with what has been on offer.” 

According to Xinja bank, neobanks are already established forces in offshore markets, including the UK and USA. 

Among the board members and board advisers of the new lender are several specialists from overseas companies, including board member Thomas Vikstrom, a former Tesla engineer, board adviser Brett King, futurist and CEO of US fintech startup Moven, and board adviser Jason Bates, co-founder of UK-based neobanks Monzo and Starling.

[Related: Xinja hits minimum target on path to $5m equity raise]