Xinja exits the neobank scene: What happened, and what does

Xinja exits the neobank scene: What happened, and what does it mean for the competition?


Xinja exits the neobank scene: What happened, and what does it mean for the competition?
Xinja founder and chief Eric Wilson. Source: supplied.
Xinja has made a shock exit from the Australian neobank scene, handing back its Authorised Deposit-taking Institution (ADI) licence and closing customer accounts, while naming COVID-19 as a major factor.
Following what it called “a review of the market”, Xinja announced it will withdraw its bank account and Stash savings account, and stop operating as a bank.
Instead, it will “refocus the business”, in other areas, including its US share trading product Dabble.
Xinja largely blames the failure on the COVID-19 pandemic, and the challenge of raising funds for a particularly capital-intensive business in this environment.

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