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Xinja, one of a few Australian startups hoping to turn itself into a fully-fledged neobank, has been developing the technology that underpins its core offering in the hope of achieving greater stability and reliability.

It already has the intent of launching its initial deposit system before the end of the decade and has been working on finding ways to ensure that the system can perform to the best of its abilities.

Xinja’s system will be based on the S4B core supplied by SAP and will be entirely cloud-based. The company picked SAP so that it could access a core mechanism that already has many of the asset management and delivery tools preloaded, making app and tech developments quick to embed.

This will provide more room for other startups and challengers to the major lending picture than was possible previously. In the current climate of apparent distrust toward big banks and lenders, there is a clear opportunity for smaller enterprises to make their mark based on honesty, reliability and a solid product offering.

Peter Makris, Xinja’s co-founder and Director of Enterprise Delivery, told the press that there is a real benefit to working with SAP, saying: ‘Unlike all other implementations where you configure from scratch, S4B arrives with a preconfigured banking configuration.’

Makris also said that because Xinja is new to the scene with no previous IT mechanisms to contend with, it ‘made sure we did no modifications to the core.’ The company dealt with any alterations necessary ‘in process engineering outside the core bank or in customization in our microservices layer or other areas in our architecture.’

This allows Xinja to ‘keep the ownership of SAP as low as possible.’ Each challenger on the scene will also need to ensure that its business operations are lean and agile.

Xinja hopes that rapid development will be on the horizon as they apply for a banking license from the Australian Regulatory Prudential Authority (APRA) like many of their potential competitors. Receiving the license would transform the company from an enterprise with a solid business plan to one that can freely operate within trusted regulations. A number of fintechs have propelled themselves onto the market in the last year or so, as technological capabilities are finally allowing new companies to challenge the mainstream banking platforms that people currently use.

Makris said that between now and its official banking deposit launch next year, Xinja needs to wait ‘for a market go-live, pending the license, but we’re live in production with the technology.’ Many other aspects are already in place according to Makris, who added: ‘We’ve got all our interfaces up and running.’ However, the company cannot make any customer accounts go live until it hears back from APRA.

Although Xinja has been testing its production on a limited basis, it is unlikely to push ahead much further until receiving the green light from the regulators. Makris confirmed that the company has ‘done full end-to-end implementation testing.’ With many potential neobanks waiting to learn what the regulators will decide, 2019 could see a series of very interesting fintech developments in Australia.