This appears to be the end of the road for Xinja bank, as the website of the neo bank has gone blank. The website either returns error messages (“page does not exist”, “page not found”) or displays the following notice:
“Please note that Xinja has decided to exit banking business and return its ADI licence. As such, the Xinja Bank Account & Stash Account have been discontinued.
For any questions or requests please contact us at [email protected]”
Less than a week ago, the Australian Prudential Regulation Authority (APRA) confirmed the revocation of Xinja Bank Limited’s authorised deposit-taking institution (ADI) licence under the Banking Act 1959.
In January 2021, Xinja Bank completed its return of deposits process after announcing its intention in December to exit the banking industry.
This marks the first time an Australian ADI had undertaken a return of deposits to its customers.
Xinja began returning deposits to its customers on December 16, 2020, after announcing it intended to cease being a bank and hand back its authorised deposit-taking institution (ADI) licence to APRA. At the time of its announcement, Xinja had 37,884 customers with 54,357 individual deposits worth more than $252 million.
APRA has closely monitored the return of deposits process, which saw all but a small percentage of Xinja deposits transferred to other banking institutions over the past month. On January 19, 2021, Xinja completed the process by voluntarily transferring the remaining 4,176 accounts (with a total deposit value of $65,809) to NAB. Xinja deposits have been transferred into new NAB accounts or customers’ existing NAB accounts, where applicable.
APRA formally approved the transfer of deposits to NAB using its powers under the Financial Sector (Transfer and Restructure) Act 1999 and Banking Act 1959. Xinja will relinquish its banking licence formally to APRA in the next few weeks.