Australia granted a new banking license to online-only banking firm Xinja Bank on Monday, September 9, allowing the start-up to compete against the country’s “Four Big” lenders that dominate the sector.
The licence from the financial regulator allows the primarily mobile financial company to compete for deposits and use the funds to lend. “We want people to have a real alternative to the incumbent banks,” chief executive and founder Eric Wilson said in a statement.
Xinja will grow its product line from pre-paid cards into bank accounts, and plans to add lending products in the first quarter of 2020.
Australia’s deposit and lending market is overwhelmingly dominated by Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group, and National Australia Bank.
Full Content: Straits Times