Investor update from Eric

Always good to get the email from Eric - thanks.

Am I reading it correctly - you are saying the Banking licence is about 4 - 8 weeks away ? Is that stopping you doing a beta with staff or just beta with general public ?

You mention money is tight which seems strange as Eric mentioned the very successful series C capital raise last month ?

I’m also interested in the comment that Xinja will be the first Neo bank to launch in Australia - doesn’t UP already have that title and isn’t 86400 also live ? Also interested in your thoughts on Volt. I think Eric has said previously he doesn’t think UP and others are innovative yet they seem to already have all the feature listed in the Xinja roadmap ?

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Hi @T_Armer - and thanks for the contribution!

We’re hoping to be granted our full banking licence in the coming 4-8 weeks, however this is entirely up to regulators, so we can’t determine an exact time frame. Until we have our full banking licence, we won’t be releasing any beta versions of Xinja bank accounts.

Whilst our series C capital raise last month was indeed very successful, the funding required to build a bank is, as you’d imagine, enormous! The capital raise meant that we could continue doing what we’re doing (i.e. building a bank), but while we’re still in a build phase, we will always have to be conscious of our spending.

Lastly - what was meant by that comment was that Xinja may be one of the first 100% independent and 100% mobile banks to launch bank account products in Australia (pending regulatory approval). Both Up Bank and 86400 have the backing of large institutions, whereas Xinja has been built from the ground up. Our view on any challenger bank shaking things up in Australia is power to them! The more competition the better chance we (neobanks) have to shake up traditional banking. :grin:

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Thanks for the quick reply. I’d also be interested in your or Eric’s take on how innovative we should expect Xinja to be. As far as I can tell every feature in the product roadmap is already available in UP. Am I missing something ? Unfortunately not Sydney based so can’t attempt App testing.

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Hi T-Armer,

Thanks as always for your kind support and thoughtful questions.

For the first 3-4 months Xinja’s functionality will appear a lot like the others, because we are laying the technical/business foundations…you know the normal everyday useful stuff; bank account, the Pays, Stash account, payments rails etc. The way we deliver it will be typically Xinja, beautiful and entirely based around the customer, but still the building blocks. After that it starts to get interesting!

UP is owned by a large incumbent bank (Bendigo Bank) so i would guess they have a certain technical constraints associated with that. Xinja is new and independent. We aren’t owned by any exisiting incumbent bank, so we dont have legacy technology behind the app, meaning we can begin to offer all sorts of interesting things that legacy banks cant and dont, and we can do it in an unusual, pretty awesome way.

TL:DR I think you can expect Xinja to be pretty amazingly innovative once the foundations are in place.

All the best

E

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