Big four bank customers flock to Xinja, deposits exceed $100m

Xinja Bank today said Australian consumers have rushed to take advantage of its new digital bank account and market-leading 2.25% savings rate, with the neobank receiving deposits of more than $100 million in less than three weeks.

“More than half of the deposits have come from Australia’s big four banks, a very strong signal that consumers are keen to embrace digital banking, get a great rate on their money and are no longer beholden to the banking oligopoly that was shown in such a bad light during the Hayne Royal Commission,” said Xinja Bank CEO and Founder, Eric Wilson.

Mr Wilson said the $100 million-plus inflow into the “Stash” savings account showed that consumers are excited by the opportunity to embrace the digital banking revolution.

“Just as importantly, they are excited by the fact that we are offering a market-leading ongoing rate without the usual restrictive conditions. At a time when the big four are slashing their deposit rates, we are providing a very competitive return whilst turning the high-cost, high profit model of Australian banking on its head.”

Mr Wilson said “Xinja now has over 15,000 customers holding over 23,000 accounts. Collaboration with our new customer base has shown that some of the most popular feature requests for the future include joint accounts, NPP (PayID) and homeloans.”

“We’re designing our product roadmap with our customers and I’m delighted to see that this is something our Xinjas are embracing, showing patience around and taking full advantage of.”

He said it was telling that at least one major bank chief has confessed to opening neobank accounts recently as the big four are under pressure to show the Australian public what benefits they offer, having been confronted with trust and reputational issues that still linger one year after the Royal Commission.

“Clearly the big four are rattled,” Mr Wilson said.

Xinja Bank was granted a full banking licence in September 2019, opening transaction accounts for early customers the same day. Xinja already had an app, and prepaid card in the marketplace, with customers and investors on board and providing feedback throughout the journey.

The Stash account was launched on January 15 this year – less than three weeks ago. This is a savings account with an ongoing interest rate of 2.25% from the first dollar invested up to a maximum of $245,000.

There are no strings attached to the Stash savings rate – with no introductory period, no mandatory monthly top-up amount, no minimum deposit.

“It was great when the first interest payment was paid on Friday night to customers who joined us in January. The vibe in the office was awesome, a real moment of pride. Customers are being rewarded for the sorts of behaviours we should be encouraging. It’s what makes our Xinjas come to work every day. It’s what makes us proudly both for purpose and for profit,” Mr Wilson said.

Xinja Bank’s 2.25% interest is calculated daily and paid monthly, with consumers receiving the full rate on every dollar in their account.

Xinja Bank’s transaction account can be used with Apple Pay and Google Pay, and can be opened in a few minutes using the Xinja mobile app. Once you have a Xinja Bank transaction account, it takes just seconds to open a Stash savings account.

Other great features of Xinja:

• Xinja customers have an average of $11,500 in their Stash accounts.
• Xinja customers have spent and sent almost $2m using the App, their card or Apple / Google Pay. That’s over 165k unique transactions.
• Over half of the deposits have come from Australia’s four major banks.
• Personal loans and home loans are coming soon.
• As a licenced bank, all deposits up to $250,000 are guaranteed by the Australian government.