Xinja has received a restricted banking licence from the Australian Prudential Regulation Authority (APRA).

it has now become a ‘neo'bank designed entirely for mobile, demonstrating that digital innovation can change the face of traditional institutions.

APRA has granted a restricted authorised deposit-taking institution licence (RADI), allowing Xinja to conduct restricted banking business.

"We are super excited and this announcement confirms our belief that Xinja represents the new way of banking in Australia. It brings us one step closer to fulfilling our purpose, which is to help people make more out of their money,” says Xinja co-founder and Chief Executive Eric Wilson.

"Xinja is all about making banking easy, frictionless and even fun so that people can make better, faster money decisions without the angst.

“We are very proud that Xinja's owners include not only local and overseas professional investors but our staff and thousands of cardholders who have invested, as part of our equity crowdfunding, and want to join with us to revolutionise banking.

Xinja Chair Lindley Edwards said Australians deserve better banking.

“Xinja will bring greater competition to the market, which has been stagnant for too long when it comes to looking after the interests of ordinary Australians. We have built Xinja from the ground up, which means we have listened to people who want to bank with us, and used their feedback to help us build a better bank.

More than 22,000 people have signed up for Xinja, which has an app and prepaid card that serves as a no-fee travel card.

Xinja charges no card fees or ATM fees either at home or abroad (although local ATM providers may charge a fee) and refunds 100% of currency conversion fees.

Xinja already has an Australian Credit Licence, which allows it to offer home loans.

In November, it announced that with its partner SAP it stood up its core banking system.

“We believe old-style banking is about to face serious challenges,” Edwards says.

“Xinja has been asking ‘what's the very best we can do?' We have been looking to other innovators and disruptors around the world to bring the best to our banking. We know people want seamless, transparent banking. We also believe our interests should be more closely aligned: what we do should be good for our customers, and good for us.