Digital bank startup Xinja has received its Australian Credit Licence (ACL) from the Australian Securities and Investments Commission (ASIC).
The licence will enable Xinja to offer home loans to its customers as it plans to start this process over the next few months.
The bank is also scheduled to introduce its own app and prepaid card by the end of this month.
Xinja chief executive Eric Wilson said: “We are delighted to receive the ACL from ASIC as the first of three licences we have applied for.
“Home loans are a key part of our business plan, and this will allow us to launch those on schedule.”
Besides ACL, Xinja has also applied for an Australian Financial Services Licence (AFSL) from ASIC as well as for a banking licence from Australian Prudential Regulation Authority (APRA).
If the entity successfully secures these two licences, Xinja will become a Restricted Authorised Deposit-taking Institution (RADI).
Xinja chief risk officer David Nichols said: “We are fortunate to be entering a highly regulated financial services sector and look forward to contributing to this regulatory landscape in a positive way.”
Xinja aims to develop itself as a 100% digital bank designed entirely for mobile. Unlike traditional banking systems, it will not have brick and mortar branches that will result into lower operating costs and low fees for customers.