Neobank 86 400 quintuples loan book after Xinja falters

author-avatar By on December 21, 2020
Neobank 86 400 quintuples loan book after Xinja falters

In its year-end update, neobank 86 400 said it now has $200m in home loans on its books, less than a week after Xinja handed back its banking licence.

Less than six months ago, 86 400 had announced $40 million in home loans.

The $200 million was achieved through expanding its broker network, with the neobank gaining access to 10,000 across the country.

The bank's CEO Robert Bell said the bank is heading into 2021 with "solid footing".

"To build a sustainable business you need to grow both sides of the balance sheet (lending and depositing). That's why launched our home loans products to market just weeks after we launched the bank," he told

"We're making good progress with the lending side of the business, and are really optimistic that this growth will accelerate in 2021 and continue us along our path to profitability."

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Meanwhile, Xinja CEO Eric Wilson cited COVID-19 economic challenges as the reason for the bank shuttering, in his email to customers.

"After COVID-19 and an increasingly difficult capital-raising environment affecting who is willing to invest in a new bank, we are convinced that the best thing is for Xinja to pivot away from being a bank," he said.

At the time of shuttering, Xinja had more than $450 million in customer deposits, yet was $36 million in the red in the 2019-2020 financial year.

The news comes after it was revealed the bank had secured a multi-million dollar deal from a 'mysterious' Chinese firm in mid-2019, as reported in the Australian Financial Review.

Earlier in 2020, Dubai-based 'World Investments' also injected in excess of $400 million into the neobank. 

Xinja's Mr Wilson and other founders appear to have deleted their social media accounts.


A rocky road for savers

In its formerly-public roadmap, Xinja had plans to offer loan products by the end of 2020.

At the time of its closure announcement, Xinja had no loan products, and a 1.50% p.a 'Stash' savings account closed to new customers.

Xinja announced its then-2.25% p.a savings account at the start of the year, at a time many other banks were struggling to offer anything higher than 1.80% p.a. 

The account was distinct in that customers did not have to meet any criteria to attain the rate, such as making a minimum deposit every month.

Savings accounts experienced a bloodbath in 2020, after three Reserve Bank rate cuts down to a cash rate of just 0.10%.

For example, the formerly market-leading savings account from RAMS sat at 3.00% p.a just over a year ago, and from February 2021 will offer just 0.15% p.a if bonus criteria is met.

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory and introductory interest rates on the market.

Photo by Outer Digit on Unsplash


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Harrison is's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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