Update of the current situation

Hi,

Can you please provide an update of what is happening with the following…

What is happening with the big investment from WI? I understand Covid affected it but what exactly is holing up the payment? Are WI having issues? Is it regulator issues? If it is regulator issues, then surely you should have known this prior to announcing it. Is it something else? Have the conditions changed? Are they definitely going to pay? I am sure you have the answers to some of these questions, otherwise there is some serious issues.

It also seems strange that Dabble is held up. I know you mentioned that it was leaked, but this was disputed. Recently it was said it will be released in November or this year. If so then it must be really close and easy to provide an update.

I am an investor but I have an account with very little. I can’t open a stash account and can do almost nothing with the account. It’s probably been said before but it is crazy that you don’t allow people to open stash accounts. You have basically stopped anyone from coming to Xinja. They would have no reason whatsoever to set up an account.

I joined Xinja prior to Dabble being announced so obviously didn’t join for that reason. I don’t plan on using Dabble. I understand this may attract others, but hopefully there is other things in the pipeline for those that don’t want it.

If Xinja is losing massive amounts of money (which is highly likely), and relying on this big payment from WI, and you can’t answer the above questions, in particular the first one then there is big issues.

I know Covid has brought the world to it’s knees. But Australia (IMO) has done the best in the whole world at containing it. It can’t be used as an excuse for everything.

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The AGM is this coming Friday the 27th.

I am sure this will be covered in extensive detail then and there is the chance to ask questions to the management and board.

@yogi honest question, are you by chance the Richard that works at Xinja?

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I’m not particularly sure what you are reaching for here or why me supporting a company I hold shares in seems to be of such concern to you.


I am not, whoever it is you mention.

I do not know if there is or isn’t a person working at Xinja with that name.

If I was working for XInja and posting “anonymously”, I think it would be pretty obvious for the company to work out who I was and I would expect to be out of a job.

Not reaching for anything, it was an honest question.

Your unwavering positivity (not specifically in this thread) in answer to anything remotely questioning Xinja’s failures led me to believe there might have been something motivating that position. A quick LinkedIn search showed up a Richard at Xinja so I thought there may have been a connection there.

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My positivity is hardly unwavering.

I think there have been unfortunate issues in regards to timings, expectations, roadmaps and delays of funding. I think my responses are thoughtful and allow leeway for growth and reality.

I think the company is doing the best it can do with what it has. I am not expecting any more or less than what is presented to me.

At the same time though, I don’t know how many discussions and people are required to keep going on about it.

Like, we know Dabble is delayed again. What else would you like me to do about that? Shall I get my pitchfork out? Interest rates have fallen again? I don’t have a Stash, it doesn’t personally affect me. It’s still a good rate for a chunk of money - any look at the other options will show this. I know as much about the status of the funding as you do, but I just have to wait to hear more.

I mean, you recently said:

Is what you said closer to what you’d like to hear from more people? I believe you may hold shares still. Why???

This is clearly a long term investment. I have shares here and I want them to be successful, but I am not expecting “overnight miracles” and have enough understanding of where the company is going that there is a lot to stick around for.

What I’d really like is someone to actually answer the hard questions. If more people saying it gets us closer to that happening then perhaps yes I would like that.

Thus far all we’ve had from Xinja are excuses or more recently silence.

As an investor I’m happy to wait longer term, but right now any optimism would be misplaced.
As an early adopter, I was promised the chance to help ‘build my own bank’. Thus far nothing has been built and the roadmap no longer exists.

Meanwhile competitors, who are operating in identical market conditions, are not making excuses, they’re out there building and releasing features. Why? Because they haven’t made the same stupid mistakes as Xinja. They’ve made good decisions and they’ve delivered.

As investors we have a right to seek answers and I don’t think the AGM is going to change that.

Btw - I meant no offence :wink:

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None taken!

Even though I do sometimes think you are a teeny bit harsh on the company, you make some very reasonable points and I understand your intention is usually very reasonable.

I do agree with much of your broad sentiment and I do perhaps wish some of the deliverables had been executed a little more… I dunno what the word is, executably.

Hopefully there have been some learnings and Dabble and personal loans are imminent. And the funding. And some first blocks of revenue. I am slightly guessing there could be some announcments connected to the AGM, but who knows.

Hopefully a lot of the foundational stuff that we’ve know of, will start to play out over the coming months in different products and services in the market.

In retrospect, perhaps this… doing the boring tedious behind the scenes stuff, didn’t quite match all the “launching this and that and ABC and XYZ”. But I think you only know this in retrospect and I can see a different approach if you look back now.

I tend to think Xinja will come to find its place in the market - whatever that precisely ends up being. I hope. I don’t want my shares going down the drain! I think this “boring” building the back end just takes time and hasn’t always meshed well with “here are products A, B and C” ready to go.

Hi @brett I can vouch for the fact that @yogi doesn’t work at Xinja!

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Hi @XinjaWatch. As we’ve already said, WI are doing due diligence but these things take time - and they did hit pause for a long time. There are no ‘issues’ just due diligence that needs to be done and we cannot control the speed at which they are moving. No conditions have changed. We can’t say it’s definite because they haven’t completed due diligence

Dabble’s delay has nothing to do with it being leaked. It was because we needed to allow for some pretty extreme market conditions (as Eric said - once in 3 generations type conditions) which means we needed to reconfigure aspects of the product. We are going as fast as we can but I’m not going to give a date in case there are unforeseen delays. Our silence is due to our decision to announce launches when they happen, not before, given the delays we’ve had thus far.

All neobanks are capital intensive so relying on external capital was a given at this stage - we won’t break even for a couple of years. This has always been the case.

COVID did cause the delay in capital - not an excuse - which meant we couldn’t develop all we wanted to because we had limited resource as a result. We’re not hiding that.

And yes - as Yogi says - do attend the AGM on Friday as per the invite you will have received.

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@XinjaWatch I think what @CaptainXinja is saying is the $160m was never really immediate, was announced pre-maturely and given the passage of time and performance of the business on balance probably won’t happen.

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@John2 @XinjaWatch just for the record that is what you said - not what I said. What I said is written in this string above!

Thanks @CaptainXinja and others. Yes I hope these issues are addressed in the AGM. You have answered them and say ye don’t have any further information at the moment, so not sure if it will change before Friday.
I’m not trying to have a go, just everything seems to be delayed and these are genuine questions that I think should be answered.
I am looking forward to the AGM. Hopefully there is some positive news and Xinja improves and moves forward!

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My prediction for the next big Xinja announcement…this forum will be closed because they will say something lame like ‘haters going to hate’

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@Azzy You’re probably right. There’s an unofficial Xinja community on Facebook which will continue though. Not sure if Xinja monitors that.

It’s such a shame. Most people on here joined to be part of the journey of building a bank…just a pity that’s not what’s happening and I think we’re all disappointed rather than hating. It’s a missed opportunity and very annoying to see the guys at 86400 building everything we all wanted here.

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So, yet another inconsequential app update overnight with no discernible enhancements.

They are game to front up to the AGM having delivered nothing customer facing over the last 9-12m.

Please don’t blame COVID again…it’s embarrassing for a ground up digital business.

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The reason other neobanks have been able to progress in COVID times is rather simple, developers are easy to move from the office to home, they only need a computer and an internet connection. Scrums can easily be held through video conferencing. So if it actually is a resource problem, it was more than likely a resource problem from the get go, with a too ambitious roadmap. The new investment will probably allow them to hire more developers, but they’re at least a year behind other neobanks, and they won’t be able to catch up. That’s the unfortunate reality.

I do expect a lot users have jumped ship by now (like myself, though I was a believer in Xinja), and will continue to do so, be it the lucky ones who were able to get a stash who use it as a savings account and not a transactional account.

To be honest, it’s sad to say I think it’s actually game over, unless they do something radical.

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Yes, agree with your sentiment.

Putting aside major product/feature launches, I will never understand why the didn’t allocate some resources for incremental UI enhancements.

Just seeing some progress on the UI would have gone a long way to keeping some momentum and helping stakeholders keep the faith.

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Was anyone able to attend the AGM tonight ? Would love to know if there was any new information on the millions from World Investments, the reasons why Dabble is four months late and when personal loans will launch ?

@yogi or others any good information ?

I managed to catch most of it.

It was a little shorter than I thought it would be, but that might have just been me. I imagined it would go on for hours.

There was nothing really particularly new that hasn’t been covered on these forums. We actually get most of the information from the staff here.

The most random interesting thing I learned was that the top 15 holders have about 86% of the company. There are about 3000 and something shareholders.

Apparently the WI is still happening and there are legal agreements of some kind in place but it’s just taking time, particularly from the WI end. There are ongoing confidential discussions with other parties regarding funding. No IPO in any forseeable future - might be considered when they start to look towards more capital. As we already know, no more crowd-sourced funding. The “ongoing concern” disclaimer very likely to appear in the next annual report but that is just the nature of things at the moment and is known and planned for. There is always the possibly of involvement with other organisations (the questioner used the example of other payment providers) and the company seeks to maximise value to deposit holders and share holders.

Definitely some frustration with some of the delays of funding and people are working perhaps too hard and that’s not sustainable in the long term. A small number of people were let go and some roles changed. Current workforce, um… 87, I think. Down from a high of 92.

Dabble is just delayed because they had to redo parts of it for some of the outlier scenarios - mentioned here already. Apparently the limited number of people using Dabble like it. Personal loans are coming and some have been issued - there were a couple of specifics mentioned about the product to do with its’ ease of use, good repayments something, but I forget the details. Both will be released to customers as soon as possible. Going as fast as they can but they want to make sure it’s done right.

Home loans are being worked on. Stash is a good rate - looking to increase access to Stash in the future, but just gotta balance everything. The consultancy service is bringing in some revenue already. Business banking eventually but not a priority at the current time - customer stuff is really the focus.

A significant point mentioned was the focus on the revenue raising things. There is a lot of stuff they want to do but they just have to prioritise and revenue things are it. They will get to the bank account improvement stuff, but it’s just not what the focus is at the current time.

The whole focus on working on the revenue raising things was really one of the main takeaways. Lots of foundation stuff has happened, open banking stuff that just had to get built. From there you can make the front facing stuff. In time, they hope to offer a broad range of financial services that covers all of financial touchpoints you might have.

Tagging @CaptainXinja in case I have mispresented anything or said something that isn’t already been publicly stated.