Xinja: Restricted banking licence

Apologies in advance for any jargon, however there is a useful glossary at the bottom of the page .

Our restricted banking licence or ‘RADI’ licence (‘restricted authorised deposit-taking institution’ licence), means we are supervised by Australia’s banking regulator, the Australian Prudential Regulation Authority (APRA) and can call ourselves Xinja Bank Limited.  The RADI licence allows us, with APRA’s approval, to offer, within certain conditions and restrictions, banking products to staff, family, friends of staff, and a small number of early adopters who have expressed interest in being involved in Xinja’s start-up phase.   We can offer banking products to the general public once we transition from the RADI licence to a full banking licence, and our RADI licence gives us until 16th December 2020 to do so.  

Why a ‘restricted banking licence’?

  • APRA introduced the RADI licence as a phased approach to licensing.  A similar ‘L plates’ type system had been introduced successfully in the UK, and means that start-up banking licence applicants have the time to develop the robust systems and processes needed to obtain a full ADI (‘authorised deposit-taking institution’ or bank).  
  • You can read and download their information paper on this at ADI Licensing: Restricted ADI Framework 4 May 2018“.  
  • Restricted ADIs can conduct limited, lower risk banking without having to comply with the full regulations or prudential framework for an ADI.

How did Xinja get a restricted banking licence?

What are the benefits for customers of a restricted licence stage?

  • More Competition in Banking: Xinja thinks that the Restricted ADI licence framework opens up the banking industry to new innovative start-ups and neobanks whilst minimising risks for banking customers.  This means more genuine choice for customers with new technology, services and customer experiences, not just the introduction of new brands associated with existing banks or using existing banking infrastructure.  
  • Any deposits with Xinja are protected in the same way that all deposits with Australian banks are protected – by the Federal Government’s Financial Claims Scheme.

What does Xinja have to do/not do during the restricted phase?

Xinja has 2 years to become a full ADI

Xinja has 2 years to convert its RADI licence to a full, unrestricted ADI licence.  This includes:

  • Raising sufficient capital to become an ADI
  • Developing control functions such as risk & compliance
  • Developing, testing and implementing systems and IT infrastructure
  • Completing policies and procedures generally
  • Finalising senior management appointments and staff recruitment and training
  • Finalising details of product, pricing & on-boarding (how customers sign up for our products and services); and
  • Finalising outsourcing arrangements
Restricted Banking Business
We will not be offering bank accounts or savings accounts to the general public during the RADI period. However you can still apply for a Xinja prepaid card or home loans (when they launch to the public).  To sign up for our app and prepaid card hit ‘join us’ at the top of the page – this is a great way to get to know us before you open a bank account us when we have our full ADI licence.
Limits on deposits

Once given approval to conduct Restricted Banking Business, Xinja’s Restricted ADI allows Xinja to take up to $250,000 in deposits per account holder and up to $2million in deposits overall from staff, family and friends of staff, and a small number of early adopters only.  This enables us to fully test our systems and processes and make sure we can fulfil all the prudential requirements to become an ADI.

What is the time frame for achieving a full licence?

  • Xinja has up to 2 years from it’s RADI licence date to either convert to a full ADI licence or exit the banking industry.  All RADI licensees must have an exit plan in place to be able to return all deposits if they do not progress to full ADI licence.
  • Xinja is aiming to convert from a RADI licence to a full banking (ADI) licence as early as possible in 2019, subject to APRA’s approval.

How will I know if Xinja has been granted a full banking licence?

Don’t worry – when we do receive a full ADI licence we will announce it via our website, social channels and email to our customers. If you would like to be told and are not yet a customer, hit the ‘join us’ button above or below. You do not have to apply for our prepaid card in order to be kept informed (of course!) – just take the ‘apply later’ option and provide your email address and we will keep you up to date.


RADI – ‘Restricted Authorised Deposit-taking Institution’

RADI Licence – as per above – a restricted banking licence

ADI – ‘Authorised Deposit-taking Institution’ – in other words institutions authorised by APRA to call themselves a ‘Bank’

APRA – Australian Prudential Regulation Authority

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