By Aisling Finn on Wednesday 25 March 2020
The digital bank has over 45,000 accounts and holds more than A$450m in deposits.
Australian digital bank has today announced a massive A$433m investment from Dubai-based investor Emirates World Investments.
The challenger bank will receive A$160m straight away and the remaining A$273m will be made available over the next two years.
H.E. Zayed bin Rashid Al Qubaisi, CEO of World Investments, said: “We believe Xinja Bank is at the cutting edge of next generation banking in Australia.”
“Its technology, commitment to customers and ethical banking philosophy made it an obvious investment choice for us.”
Eric Wilson, CEO and founder of Xinja, said: “We know that this is a very difficult time for Australia and the world, and considering the health crisis we are all facing, this is not a time to celebrate.”
“I believe Xinja’s mission to help Australians make more of their money is going to be even more important in the coming year.”
Wilson also commented that he believes this round of funding could be the “largest single investment in an Australian neobank or start-up.”
Xinja received its full banking licence in September 2019 and now has over 45,000 accounts and holds more than A$450m in deposits.
Earlier this month it was revealed that the challenger bank was turning away new customers for its savings account after the Central Bank of Australia slashed interest rates over concerns with the coronavirus pandemic.
Unlike its rivals who are slashing the interest rates they pay on savings accounts, Xinja is maintaining its 2.25 per cent payouts at a likely huge cost to the business.
Xinja also announced that it is due to launch personal and home loans later this year.