Popular Australian neobank is set to shut down

Also, payment facilities and cards will be terminated from 15 January 2021

Xinja Bank

Popular Australian neobank is set to shut down. Source: facebook.com

Xinja has revealed its plans to close customer accounts, refund customer savings, and even return its banking license.

Customers will be given a 7-days’ notice after which their high-interest accounts will be closed. Effective immediately, accounts will not be earning any interest.

The bank has been working on concluding an investment deal with Dubai World Investment Group worth $433 million.

It was also fixated on young investors or millennials, had planned to introduce glow-in-the-dark bank cards and high-interest deposit accounts. Plans to introduce loan products were also futile.

Funds raised in crowdfunding in 2019 and equity rounds in 2020 were used to ensure no lay-offs occurred in the firm while also safeguarding the bank’s balance sheet.

The coronavirus pandemic negatively affected the bank’s operations that made it difficult to secure capital. As the bank exits the banking sector, it will now concentrate on the share trading platform in the United States.

We’ve reported that JPMorgan Chase & Co plans on increasing up to 20% bonuses for some traders, Bloomberg reports. However, the company will freeze salaries for those employees with titles of vice presidents and above.

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Categories: All materials Banks News
Tags: Australia