Neobank Xinja to close accounts, return banking licence

Neobank Xinja has announced it will close all bank accounts, refund customer savings and hand back its banking licence after what has been a challenging year for the company, The Sydney Morning Herald reports.

The fintech will now give customers seven days notice before closing all high interest Stash accounts, after it banned new customers from joining in March. Accounts will no longer earn interest effective immediately, and cards and payment facilities will be terminated from January 15.

Xinja has blamed COVID-19 and a tough capital raising environment for the decision to exit banking, and said it will refocus the business on its US share trading platform “should circumstances allow”.

Read more: The Sydney Morning Herald