Australian neo bank Xinja is tapping into a deep well of public disquiet about the power of Australia's Big Four banks, raising almost $2.6 million in its latest crowdfunding campaign.
The amount raised from the sale of shares on the Equitise crowdfunding platform is the largest achieved from any crowdfunding campaign in Australia, beating the previous record of A$2.44 million set by Xinja in its first campaign early last year.
Operating under a restricted banking licence, Xinja already has an app and prepaid travel card in market. So far, the company has signed up 25,000 users and issued over 10,000 cards.
The startup is hoping to receive a boost from a recent Royal Commission report which found widespread misconduct and a general disregard for customer interests among the traditional banking sector.
Xinja CEO and founder Eric Wilson says feedback from investors showed there is considerable dismay among the public about the way they have been treated by their banks. “Australians deserve better," he says. "We all heard about traditional banking throughout the Hayne Royal Commission hearings. The best business model is to do the right thing by your customers.
“The prepaid card was an opportunity for people to get to know Xinja, and for us to develop our app; we are looking forward to bringing a bank account to market that helps people manage their money better, subject to our receiving a full licence.”