Xinja, which hopes to lead a wave of new digital start-up banks, says moves to relax the strict licensing regime for the industry are already making investors more willing to back small challenger banks. Xinja, which is looking to raise $10 million to $15 million in capital next month, equal to about 30 per cent of the company, is aiming to next year launch what have been dubbed “neobanks” in the United Kingdom.
These are small banks that provide basic retail banking products such as transaction accounts and mortgages, but are designed entirely for customers who do their banking on a smart phone.
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