Alex launches personal loans to challenge traditional banks
Alex, whose mission is to make banking simpler for Australians, today announced the launch of its first consumer lending products at highly competitive rates, filling a gap in an area under-served by the big banks.
Chief Executive Officer of Alex, Simon Beitz, said the launch of the company’s consumer lending products represented the culmination of a strategic build-up of the company over two years.
“Our aim is to provide Australians with fairer banking products that are simple to understand and easy to use, meeting the needs of consumers that the big banks have forgotten about,” said Beitz.
“It is time Australians had a better way to bank. We are building a new bank from the ground up, leveraging the very best technology, artificial intelligence and hybrid team of experienced bankers, technologists and designers to give faster credit decisions, humanise banking and ultimately give our customers a better deal.
“Consumer behaviour is shifting. Customers now compare their bank interactions with social media, entertainment of retail interactions. They are after speed, transparency and value through digital channels, but they also want good customer service, flexibility, and no hidden agendas. Alex provides this.”
Chief Financial Officer Craig Fenwick said Alex has applied for a Restricted-Authorised Deposit-Taking Institution (RADI) license from the Australian Prudential Regulation Authority (APRA), which would enable it to offer deposits, in line with its strategy to extend the scope of its services and eventually secure a full banking license.
Mr Fenwick said $26 million has been raised so far to support Alex, which is already revenue making.
“We have secured funding from a variety of investors, who believe in the long-term vision of Alex, as well as an additional $10 million in wholesale debt funding from Sturt Capital Partners, providing the firepower we need to grow our lending products in market,” he said.
Fenwick continued, “We are targeting high quality customers who are tired of being ignored by banks that are focused on low margin property lending. Our dynamic and stringent credit risk platform, developed in house and driven by data, allows customers to apply for a loan in five minutes and have it funded within three hours.
“Thanks to technology, checks such as identity KYC and AML, fraud, loan serviceability, income verification and responsible lending assessments can be completed in just a few seconds. This results in very few circumstances where Alex needs to ask customers for additional information to make a good lending decision,” Fenwick added.
It is not only quick to apply but Alex’s loans are sent out to customers within 30 minutes during business hours.
Alex’s consumer loans of up to $30,000 are offered at rates which are among the best in market, payable from six month to five years with no on-going fees and no early repayment penalties.
Alex’s personal loan is already winning awards, just weeks after being launched in market, picking up the 2021 Mozo Experts Choice Award for Best New Loan Product, a Canstar 5-Star Rating and a being named a finalist in comparison site Finder’s 2020 Awards in the Best Risk-Based Personal Loan category.
