The Australian Prudential Regulation Authority granted a restricted banking license to digital-only lender Xinja Bank Ltd.
The regulator said Dec. 18 that it authorized Xinja Bank as a restricted authorized deposit-taking institution under the Banking Act 1959. Under the restricted ADI licensing framework, eligible entities can conduct a limited range of business activities for two years while they build their capabilities and resources.
In a post on its website, Xinja Bank said it expects to be inviting customers to open accounts in the second quarter of 2019. It will operate under the restricted license until Dec. 16, 2020.
Xinja Bank is not the only digital-only lender in Australia to have received a restricted banking license from APRA in 2018. In May, the regulator granted Volt Bank Ltd. a restricted banking license, giving it two years to meet the prudential framework in full.