Powered by MOMENTUM MEDIA
Broker Daily logo

APRA revokes Xinja licence

APRA revokes Xinja licence
expand image

The regulator has officially revoked Xinja’s banking licence, following the completion of its return of deposits.

The Australian Prudential Regulation Authority (APRA) has revoked Xinja Bank Ltd’s authorised deposit-taking institution (ADI) licence.

Last month, Xinja Bank completed its return of customer deposits and transferred the remaining tail of deposits to National Australia Bank (NAB) after making the shock announcement that it would hand back its banking licence and cease offering banking products.

“After a year marked by COVID-19 and an increasingly difficult capital-raising environment, and following a review of the market in Australia, Xinja has decided to withdraw the bank account and Stash (savings) account and cease being a bank. This was an incredibly hard decision,” Xinja had said at the time.

==
==

At the time of the announcement, Xinja had 37,884 customer with 54,357 individual deposits worth more than $252 million.

The bank made history by becoming the first Australian bank to undertake a return of deposits to customers, with many commentators stating that part of Xinja’s downfall was the delay in launching a mortgage product.

APRA has now announced that the bank’s licence has been revoked, officially concluding the neobank’s journey.

[Related: Xinja fate is a lesson for other fintechs: GlobalData]

More on Regulation
18 November 2024
NAB has been targeted by ASIC after allegedly failing to support customers when applying for hardship support.
15 November 2024
The government has announced a fund aimed at boosting productivity across the country, including in housing construction ...
14 November 2024
The resetting of the Consumer Data Right (CDR) has begun, with changes coming into effect this week.