Australian digital bank in1bank has decided to discontinue its banking operations.
The bank will return all customer deposits and then surrender its Authorised Deposit-taking Institution (ADI) license to the Australian Prudential Regulation Authority (APRA).
Customer funds remain safe throughout the process, and customers can continue to access their accounts while in1bank returns deposits.
They must check that the Alternate Bank Account shown in the in1bank app is correct. This account will receive the transferred funds and customers should confirm the details by replying to an email from in1bank.
From 9am AEDT on 23 January 2026, in1bank will begin transferring funds. Once customers confirm their account details, any remaining balances will move to the nominated Alternate Bank Account.
The bank will then close in1bank accounts and customers may also transfer funds themselves using the app. The in1bank app will stop operating at 5pm AEDT on 5 February 2026.
As an Australian incorporated ADI, in1bank falls under the Australian Government’s Financial Claims Scheme (FCS).
The scheme covers certain deposits of up to A$250,000 per account-holder, in aggregate, if activated. It provides depositors with prompt access to funds if an ADI cannot meet its financial obligations.
The bank announced the return of deposits on 22 January 2026. During the Return of Deposits period, from 23 January to 5 February 2026, transaction account balances will transfer to nominated external accounts, including accrued interest.
Term deposits will end early, with interest paid to maturity, and proceeds transferred to transaction accounts. in1bank expects to complete account closures and transfers within 14 days.
Final statements will be issued on 5 February 2026 and payment facilities will no longer operate from that date.
Customers with offset accounts linked to loans may transfer balances to reduce loan amounts or move funds to accounts with other authorised deposit-taking institutions.
Featured image credit: Edited by Fintech News Australia, based on image by wahyu_t and kues1 via Freepik
