Fallen neobank Xinja returns customer deposits

Fallen fintech Xinja has become the first Australian bank to return all customer deposits, finalising the closure of its savings accounts more than a month after it made the shock announcement to exit banking.

The Australian Prudential Regulation Authority announced on Tuesday Xinja had returned $252 million in deposits to 37,884 customers and the remaining $65,908 would be transferred to the National Australia Bank for collection.

Xinja will relinquish its banking license formally within the next few weeks, APRA said.

“Xinja customers whose deposits have been transferred to NAB can elect to leave their funds there, or transfer them to another bank of their choice,” the regulator said. “This was the first time an Australian ADI had undertaken a return of deposits to its customers.”