Loans as an Investment

I don’t know how this works, so if I am totally off track, do say so.

Is there a scenario where Xinja offers a sort of Plenti (Ratesetter) style lending product, where I can invest $X and I earn a percentage of the amount being repaid. But in a totally formal recognised banking sort of way.

I put some money into the bank to lend in a safe organised way as an investment and as part of an overall pool of funds from wherever, Xinja lends the money out, that generates revenue and I get a little cut of it back.

A simple “set and forget” kind of system, rather than multitudes of different options. I put some money in, I get some back. Done.

Obviously there are a million checks and balances in place and the bank takes the responsbility for the loan and the vast share of the gain, but every month or so, I get some dollars added to my Stash.


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Hey @yogi - thanks for the suggestion :blush:

This sort of product is quite a big piece of work and isn’t something we’d look at offering until we’ve determined our loan performance. So it’s not something that will be available at launch of our lending products, but it could become relevant in future & we might look to explore down the track!

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This would be great+ i use ratesetter / plenti and to have the facility within your own bank would make transfers in faster and also help grow the balance sheet of Xinja as you would loan out to the borrower at a larger rate than the lender recieved taking a small cut to grow cash balance and be available to pay out loan defaults. Would likely grow your revenue fast as anyone could invest through Xinja and not need to invest In Xinja.


There are lots of possibilities.

I note today that Afterpay is hooking up with NAB for some sort of basic transaction something and ZIP is offering a virtual credit card something or rather. Whatever the specifics may be.

The line between bank account and financial services is definitely getting squishy and a good space for Xinja to be laying the foundations towards.

The particular strength of Xinja here will be that they hold their own ADI and seem to be doing a lot of the early technical foundational stuff well.

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What would the benefit of this be to Xinja? Is it just more incoming funds to lend out to customers paying loan interest at RBA + 250bps or whatever?

Does Xinja need funds to loan out?

I don’t have any clue as to how many Stash accounts are in existence, or the balances held therein, but at the risk of sounding like a broken record, if they just opened up the Stash accounts to those who have been waiting for months there would probably be a huge influx of cash. At the same time, increasing the max balance back up to $245k will likely draw another 63% of existing balances from at least a proportion of existing Stash investors.