Xinja Bank, first launched in May 2017, today announced that it has now been able to open transaction accounts to early customers.

APRA also released a statement on the approval, noting it had granted Xinja Bank Ltd “a licence to operate as an authorized deposit-taking institution (ADI) without restrictions under the Banking Act 1959.

The bank’s chief executive and founder, Eric Wilson, called it “enormously exciting that Australians have a new, independent bank”.

“It’s time Australia’s very old banking model was disrupted,” he commented.

According to Mr Wilson, the bank is 100 per cent digital and aims to give people “a real alternative to the incumbent banks”.

“We want to give customers a real choice to be able to be with a bank that looks after them,” he said.

The new transaction accounts being rolled out from today are accessed solely via the new Xinja app and come with a Xinja debit Mastercard ®, it’s been reported.

Savings accounts will be offered soon, with lending products added in the first quarter of 2020, “as well as some other fun, ‘unbanky’ surprises”, Mr Wilson added.

Customers already using the bank’s prepaid card system and individuals on the waitlist will be the first to be able to access Xinja’s new accounts.

Mr Wilson said, “This is what banking should be. Hyper-personalised services that leverage customers’ data in their interests.”

According to a statement from the bank, having zero legacy systems and using state-of-the-art technology gives Xinja Bank “a massive advantage over both traditional and Australian digital banks”.

It’s reported as being the only 100 per cent cloud-based bank in Australia.

“We don’t have bricks and mortar branches or old technology that we are constantly patching to meet the needs of customers,” Mr Wilson said, noting costs as significantly lower than traditional banks.

Xinja Bank was first granted a restricted banking licence (restricted ADI) in December 2018, and said it worked with regulators to meet the stringent requirements needed to then obtain its full licence.