Xinja CEO and founder, Eric Wilson said on Wednesday that more than half of the deposits have come from Australia’s big four banks, “a very strong signal that consumers are keen to embrace digital banking, get a great rate on their money and are no longer beholden to the banking oligopoly that was shown in such a bad light during the Hayne Royal Commission”.
Wilson said the $100 million-plus inﬂow into the “Stash” savings account showed that consumers are “excited by the opportunity to embrace the digital banking revolution”.
“Just as importantly, they are excited by the fact that we are offering a market-leading ongoing rate without the usual restrictive conditions,” Wilson said.
“At a time when the big four are slashing their deposit rates, we are providing a very competitive return whilst turning the high-cost, high proﬁt model of Australian banking on its head.
“Xinja now has over 15,000 customers holding over 23,000 accounts. Collaboration with our new customer base has shown that some of the most popular feature requests for the future include joint accounts, NPP (PayID) and homeloans.
“We’re designing our product roadmap with our customers and I’m delighted to see that this is something our Xinjas are embracing, showing patience around and taking full advantage of.”
Wilson said it was telling that “at least one major bank chief has confessed to opening neobank accounts recently as the big four are under pressure to show the Australian public what beneﬁts they offer, having been confronted with trust and reputational issues that still linger one year after the Royal Commission”.
“Clearly the big four are rattled,” Wilson said.
“Xinja Bank was granted a full banking licence in September 2019, opening transaction accounts for early customers the same day. Xinja already had an app, and prepaid card in the marketplace, with customers and investors on board and providing feedback throughout the journey.
“The Stash account was launched on January 15 this year – less than three weeks ago. This is a savings account with an ongoing interest rate of 2.25% from the ﬁrst dollar invested up to a maximum of $245,000.
“There are no strings attached to the Stash savings rate – with no introductory period, no mandatory monthly top-up amount, no minimum deposit.
“It was great when the ﬁrst interest payment was paid on Friday night to customers who joined us in January. The vibe in the ofﬁce was awesome, a real moment of pride. Customers are being rewarded for the sorts of behaviours we should be encouraging. It’s what makes our Xinjas come to work every day. It’s what makes us proudly both for purpose and for proﬁt.”
As reported by iTWire early last year, Xinja completed a capital raising seeking investors to “help shake up Australia’s banking system”.