Xinja Bank to return ADI licence, plans to withdraw deposit accounts
Australian startup Xinja Bank has confirmed that it plans to withdraw its Transaction and Savings account products and return its ADI licence.
“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 said. “We hope to refocus the business in other areas such as our US share trading product, Dabble, should circumstances allow.”
The Australian Prudential Regulation Authority (APRA) is closely monitoring Xinja’s return of deposits to ensure that funds are returned in an orderly and timely manner.
Under the terms of the product, Xinja is giving its customers the required 7-day notice before closing the Stash Account and will be encouraging them to transfer any funds out of bank accounts as soon as possible.
In addition to the return of deposit process, Xinja’s depositors remain protected by the Financial Claims Scheme (FCS).
If customers wish to lodge a complaint, the complaint should first be directed in writing to Xinja. If the issue has not been resolved to your satisfaction, you can lodge a complaint with the Australian Financial Complaints Authority, or AFCA. AFCA provides fair and independent financial services complaint resolution that is free to consumers.