Competition In The "Neobank" Space


#1

Anyone else here seen another Australian Neobank called “Volt Bank” apparently they already have received their banking licence & was just wondering if Xinja sees them as a threat or as healthy competition?

I’m bringing this up because awhile back i noticed on the Xinja website, the front info changed from “Building Australia’s first independent 100% digital bank” to “We are building an independent, 100% digital neobank for Australians”.


#2

Have you ever heard the proverb “the enemy of my enemy is my friend” ?

I don’t work for Xinja and I’ve only recently arrived in Australia, but from what I understand you guys have been suffering from the big four much like ourselves in the UK.

Any other neo banks coming on the scene should be celebrated. Of course if 20 new banks opened their digital doors you’d have to question the system, but there’s plenty of room for a few digital banks with similar goals of bringing a better banking system and taking a piece of the incumbent pie.

Monzo and Starling in the UK seem to be grabbing headlines, meanwhile Atom is doing its own thing as a bit of a silent killer. They all congratulate and push each other to do better in their field. Plus a bit of competition is healthy, it keeps everyone on their toes.

From what I gather Xinja are looking to focus their offerings as mortgage products. @XinjaMaker clearly has a dream of what he wants Xinja to be and thinks the Australian banking scene is missing something. The focus is ultimately to make money, remember a bank is a business, and there’s a path Eric wants Xinja to follow. Is this the same path as Volt? Who knows. But like any business, you should focus on your own goals, have integrity and not worry too much about what everyone else is doing. That’s not to say you shouldn’t be watching and listening, just don’t go changing your ideas at the drop of a hat. If that is the case then clearly you don’t believe in your own plan enough and probably don’t deserve to be in the business.

Check out Eric’s interview on 11:FS’s Fintech Insider podcast, episode 164. He gives an insight into the business as it was at the end of 2017 and where he would like to see the business end up.


#3

Definitely! Yeah Volt got there before us, power to them :slight_smile:

Two_seven is right though, the rising tide lifts all ships on the level, and I would say Volt is on our level, rather than the level that will be adversely affected by it (encumbants).

Basically, the most disgruntled are the first to leave, but they’re also the first to realise how much better it can be, so they’re also the loudest:

“Have you heard of Xinja? I got X so much cheaper than at Y bank”

“Can you believe Xinja doesn’t have any markup of currency conversion fees??”

“So glad I moved my home loan to Xinja, they’re the only bank who didn’t lift rates last year”

Etc, Etc. (Just a prediction though.)

What do you think the market will look like in 5 years>