Neobanks are about to explode onto the Australian market
A number of restricted banking licences are expected to be issued to aspiring neobank startups by Australian authorities in the next few months.
A raft of fintech players, including Xinja and Up, have already completed detailed applications to the prudential regulator APRA.
The first licence went to Volt in May this year, creating another bank in Australia for the first time in 28 years.
Since then, key players have been working to complete the regulatory hurdles to be able to call themselves a bank.
APRA hasn’t a timetable for an announcement of new restricted authorised deposit-taking institution (RADI) licences but several startups expect an announcement shortly.
The new restricted licence framework is designed to help new entrants to the banking industry.
A minimum requirement is $5 million in assets, $3 million of which must be liquid.
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