Startup bags licence to offer home loans

by AB21 Feb 2018

Bank startup Xinja has received an Australian Credit Licence from ASIC and plans to offer home loans in the next few months.

As early as now, the startup is promising approved loans in about 20 minutes through technology that it is bringing in from overseas.

The company said today that the licence is a significant step forward as it tries to build what it calls Australia’s first independent, 100% digital bank.

The ACL is the first of three licences the company has sought. It has also applied for a financial services licence from ASIC and a banking licence from APRA, to allow it to become a restricted authorised deposit-taking institution.

“Home loans are a key part of our business plan, and this will allow us to launch those on schedule,” said chief executive Eric Wilson.

Xinja has raised more than $1.4m to date since launching an equity crowdfunding offer last month.

The company kicked off its crowd-sourced funding campaign through Equitise the same day that ASIC licensed seven companies to provide crowdfunding services in January. As Australian Broker reported, Equitise -- one of the seven providers authorised by ASIC -- raised $500,000 from retail investors for Xinja in less than 24 hours.

Xinja said the offer is open until end-March and is part of its second round raise of $10 million. It raised half the amount in November from private investors.

Related stories:

Money pours in after ASIC move

ASIC allows intermediaries to crowd-sourced funding


  • by Marcus 21/02/2018 2:19:52 PM

    Why is it Mortgage Brokers are being slammed from all angles by Regulators et al and Fintecs like these have a free reign, having no fences around them to protect Consumers from unscrupulous practice all in the interest of so called competition. ASIC indeed have a checkered history anyway with lack of regulation on investment houses of past years amongst many others.

  • by 21/02/2018 2:26:12 PM

    Maybe all brokers should become Fintecs, as they apparently don't have to play by the same rules. How can they provide advice under NCCP in 20 minutes. Impossible!!!!

  • by Cubeman 21/02/2018 2:42:17 PM

    I don't read it as loan application in 20 minutes, I read it as 20 minutes from when app is lodged until approval if that makes more sense. Each to their own and hopefully they will also deal with the broker channel!