AFR covers Xinja's submission re $50m barrier for neobanks

Xinja is working closely with the Australian Prudential Regulatory Authority (APRA) on the regulatory changes being proposed by Government to increase competition in the banking sector. James Eyers of the Australian Financial Review covers our submission to treasury supporting the reduction of the $50m minimum capital requirement for new banks. Our argument is that this is a much more draconian requirement than other industries, and almost impossible to raise, therefore limiting the chances for new entrants significantly. Our recommendation is for a lower barrier to entry and a measured, phased process for new banks (or 'neobanks') to prove their capacity and reliability over time, to ensure security for customers whilst enabling the sector to grow competitively. Read the full story here. (Please note, there is a paywall so access is not automatic).