New bank Xinja planning seven-minute approvals for home loans

Startup bank Xinja has cleared another hurdle on its way to realising its ambition to become a major disruptor in the Australian retail banking system by offering better service and home loans that take just seven minutes to approve.

Xinja is now looking to raise at least $50m from investors after being granted an unrestricted full licence from APRA, the Australian Prudential Regulation Authority

Xinja joins other startup banks, 86 400 and Judo Bank, in getting APRA’s approval. Other startups are also building towards seeking APTA licences as Australia follows overseas trends of acknowledging exclusively on-line banking.

CEO and founder of Xinja, Eric Wilson, says the bank is now in a position to accept deposits from customers and is planning to offer savings accounts later this year and loans in early 2020.

The bank’s plans include offering a home loan that can be approved in seven minutes which should prove a major attraction to the vast majority of home buyers by cutting through delays caused by red tape.

Mr Wilson, whose banking background includes time with the National Australia Bank, said offering more attentive service to customers would be a feature of Xinja’s appeal.

“It’s enormously exciting that Australians have a new, independent bank,” he said. “It’s time Australia’s very old banking model was disrupted.

“We are 100 percent digital, and we want people to have a real alternative to the incumbent banks. We want to give customers a real choice to be able to be with a bank that looks after them. 

“From today, we’re rolling out bank accounts to customers.”

The bank has already raised $50m in capital and is looking to raise an additional $50m in a series D fund-raising that will also be aimed at institutions. The long-term fund-raising total is $150m in the next three or four years.

The bank is completely digital and has no branches.