Xinja Bank is set to expand its product suite with the launch of a share trading service aimed at existing deposit customers and local investors.
The bank last week posted disclosure documents on its website that gave details of a new product called “Dabble” that will be embedded in its mobile banking app.
All documents containing information about the service were removed from public view by the company at the weekend.
Dabble will give users of the Xinja app the ability to buy and sell around 3,500 shares listed on the New York Stock Exchange and the Nasdaq.
It also allows account holders to trade exchange-traded funds quoted on the US exchanges.While the cost of using the platform is not yet clear, Xinja appears to be considering an option to give traders commission-free access to the service by levying only a monthly subscription fee.
Xinja has enlisted New Jersey-based share trading technology provider Drivewealth to deliver the core execution and management functions for the Dabble platform.
Drivewealth’s platform underpins US share trading services marketed by Revolut in the UK, Hatch.co.nz in New Zealand and Stake in Australia.
A feature of the pricing for the Stake and Hatch services is that traders incur no brokerage costs on transactions.
Stake and Hatch generate revenue by levying either monthly subscription fees or conversion charges when users move money from Australian dollars into US currency.
In line with the offerings of most Drivewealth partners, Xinja is expected to give local investors access to fractional share buying.
Drivewealth’s management system generates tax statements for Australian traders who can request the platform to automatically lodge mandatory filings with US tax authorities.
Xinja will be hoping that the Dabble operation wins over new customers and opens a lucrative revenue stream.
The bank, which had $467 million in customer deposits at the end of May, has been burning cash most of this year after delaying its entry into consumer lending markets.
The company is under pressure to build revenue sources after posting a net loss of $21.8 million in 2019.