Alex Bank co-founder Simon Beitz
The founders of Australia’s newest bank – Alex Bank – are vowing to make retail banking a fairer and simpler experience for customers.
Directors of the Brisbane-based business were notified yesterday that APRA had approved their application for a restricted banking licence.
Alex is the first institution in more than 18 months to secure a banking authority after the regulator imposed a freeze on issuing new licences after the outbreak of Covid-19 early last year.
The new bank, which has been operating as an online personal lender since 2018, is the brainchild of former Suncorp executives, Simon Beitz and Craig Fenwick.
Beitz last night talked up the company’s plan to deliver a value-for-money banking service that struck a balance between the interests of customers and investors.
“One of Alex's core principles is to make banking fairer,” Beitz said.
“This includes giving customers the fairest interest rate possible across both savings and lending products, without hidden fees and nasty surprises.
“We do this by using technology and processes that are fast and minimise friction and unnecessary risk.”
Beitz believes the bank can provide market-leading products and interest rates without skimping on customer service or returns to investors.
Alex is sitting on around A$35 million of capital that was raised from private investors, mostly in Australia.
In the last six months Alex has processed more than 10,000 personal loan applications, all of which Beitz says were assessed within 24 hours.
The bank relies heavily on artificial intelligence to assess applications and price for risk. Alex has also introduced a biometric verification process embedded in its platform.
Identity verification is done automatically and instantly through a photo capture of the applicant’s ID and a selfie of the customer.
AI technology is then used to ensure they are the same person, reducing the risk of stolen identity and fraud.
Beitz said “Alex” was chosen as the company’s brand because it aligned with the goal of humanising the banking experience.
“Neither male or female, Alex is a diverse, empathetic team whose aim is to make you feel understood, a team that gets you,” Beitz said.
Alex is the first company to secure a restricted banking licence since December 2019 when In1Bank Ltd was granted an authority (and is yet to start trading).