Stash, World Investments and 433milion

Ok so it’s now well into August. Would be good to get a real update on World Investments and the previously trumpeted $433 million investment (including the $160m announced as immediately over 5 months ago). Fund Managers are still making investments and all sorts of companies have raised funds over the last five months so Covid19 can’t be the only reason ? What is happening ? At the time Eric described the investment as small for World Investments so if small why has it not proceeded ?

Also it would be good if you could level with customers on Stash. If was closed to protect the interest rate at the time but that has long since passed. Is it still closed simply because Xinja can’t afford the interest ?


Hi @Hello,

The UAE has been hit hard by the imapcts of COVID-19, with over 64,000 cases in a country less than half the size of Australia, and strict distancing restrictions are still in place. The regulators there in particular were not operating for a while and this deal requires regulatory approval.

As you may have seen, World Investments have confirmed publicly their intentions to go ahead with this A$433 million investment, despite delays caused by the coronavirus pandemic, and the deal is starting to move forward again now, but we still think it will take time.

Like any business, you’re right, we need to manage our costs. We’ve dropped the interest rate on Stash as the RBA have dropped theirs, but it still remains very competitive at 1.65%. We’re not certain yet when we will re-open it, but it won’t be until after we launch our first lending product (personal loans) in a couple of months.


So when the “$160m immediately” was announced is was never really going to be immediately even without Covid because it needed UAE regulatory approval. I must say if feels like it was a opportunistic premature press grab to drum up local support. I recall the Equitise program was held open longer to allow investors to get in on the great news.

Anyway I do hope you can secure the investment. Is there any recent public statement from World Investments or are you referring to the Banking Day article ? Xinja have been pretty scathing of Banking Day so not sure I would take that as gospel.

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So how is the cash situation for Xinja or should I say Capital Adequacy?

How is cash being replenished if no further 'Stash" funds are being allowed?


Closing stash actually helps Xinja cash position and capital adequacy in the short term. Deposits cost Xinja interest expense and more deposits mean more capital has to be set aside for regulators. The only prob with preserving capital this way is you are not growing customer numbers, the other new banks like UP are streaming ahead making the gap to good bigger and bigger and finding new investors becomes even harder because the story isn’t strong.

Some good points there.

To clarify, Up is not really in the same funding boat as Xinja. Up has been launched for a couple of years (a more mature product) and they don’t hold their own banking licence, so the funding requirements are nowhere near as substantial.

Speaking of Up, there is another reasonably new, legally similar company about to list on the ASX. They are starting with very little traction and have been trying to get going for a while now.

Anyway, back to the main story - hopefully US share trading and then loans can start to balance things out a little more.

The other issue is that it’s so much more of a challenge earning any sort of interest rate anywhere now. Even taking into account that they may theoretically eventually drop the rate again, say 1.5%, the “problem” for Xinja will be that as soon as they open up account access again, they are going to get absolutely slammed with people wanting to get accounts and park some money. So what would be a second massive hit of money coming in, has to be accounted for.

Fully aware Up is a Brand and Subsidiary of Bendigo Bank but I’m not sure customers care. It is miles ahead of Xinja in terms of features.


Agree with you - the “average” customer is not going to be so caring about whether it is a bank or neobank or neobanking or etc etc.

There are room for many players - I think Xinja will come to its’ own over the next couple of years.