Digital Challenger Bank Alex has been granted its full banking license by the Australian Prudential Regulation Authority (APRA).
Authorized Deposit Taking Institution (ADI) The fintech firm, founded in 2018 by CEO Simon Betz, comes 18 months after former Suncorp executive and chief financial officer Craig Fenwick Limited ADI license in tough times for neobanking sector.
Alex has been the fastest growing personal lender, handling tens of thousands of loan applications over the past two years. Fast Credit is targeting about 3 percent of the primary consumer loan market before scaling up to offer a wider range of banking services.
The bank offers personal loans of up to $50,000 through brokers and white-labeled digital channels for a 3-minute application and a response within 60 seconds.
The lender is looking to tap into the small business market, which is fertile ground for Neobank Judo, and plans to launch new products including digital deposits and term deposits.
Currently offering an invitation only savings account a % interest rate.
Beitz, CEO of Alex, said the ADI license was a proud moment for the team.
“It represents the culmination of many years of hard work and will allow Alex Bank to leverage our investment in next-generation technology that enables faster and more efficient direct processing of deposits,” he said.
“We’re excited to expand our product portfolio by adding an award-winning personal loan and savings account, including deposits.”
Beitz said that by 2022, the bank is focused on growing its broker partnerships and now has access to the majority of brokers in the market.
The bank has offices in Brisbane and Sydney and over 2500 customer accounts.
“This is just the beginning for Alex Banks. Over the past three financial years we have grown our revenue by 717% compounded annual growth and are proud to be one of Australia’s fastest growing companies.
In September last year, Alex raised $20 million in Series C, valuing Neobank at over $120 million. That income came from existing shareholders and new investors, Washington H. Sol Pattinson, Regal Funds Management, Wunala Capital and SG Hiscock & Company raised $34 million.
But amid Alex’s continued success, the neobank sector has remained an insurmountable challenge for some over the past two years.
In December 2020, Neobank Xinja closed shop, and in June of this year, Vault closed due to its inability to secure new capital. Partner Digital Bank has announced the sale of 86,400 to NAB in January 2021.
