Digital startup Xinja is now officially a bank after securing a restricted banking licence from the Australian Prudential Regulation Authority. Under the terms of the special authority issued on Tuesday by the prudential regulator, Xinja can raise up to A$2 million of retail deposits and hold up to $100 million worth of loans on its balance sheet.To expand its banking business beyond these limits, Xinja will need to secure a full banking licence within the next two years.Managing director Eric Wilson said Xinja would pursue a staged entry into the retail banking market building on the growth of its stored value card, which provides online shoppers and overseas travellers with rebates on currency conversion fees. "The restricted licence brings us one step closer to fulfilling our purpose, which is to help people make more out of their money," said Wilson."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 crowd-funding, and want to join with us to revolutionise banking."More than 22,000 customers are already using the bank's mobile app to access their pre-paid card accounts.Most of those customers will be eligible to open direct banking accounts with Xinja next year."We hope to be inviting people to open an account in the second quarter of 2019," Xinja told customers on its proprietary blog last night."Exact timing is dependent on the regulator."While the country's newest bank has promised to "revolutionise" the way Australian consumers do banking, Xinja may have to wait until 2020 to pursue scale in its deposits and proprietary lending businesses.One of the keys to the winning the full banking authority will be the company's ability to raise fresh capital.The bank currently holds capital of around $17 million and is aiming to raise a further $20 million when it launches a third round of funding in January next year.Xinja is the second Australian banking aspirant to secure a restricted authority under APRA's new licensing regime.Volt Bank, which is now in line to obtain a full licence, was granted the first restricted licence in May.