Australia's latest challenger bank, Alex, has gone live on Temenos' cloud-based core banking system, with the aim of branching out from consumer credit to deposit-taking.
Founded by former Suncorp bankers in 2018, Alex Bank was granted a restricted banking licence by the prudential regulator last Wednesday.
Temenos technology has already supported the bank to process almost 10,000 loan applications in the last six months, with each application taking the customer just three minutes to fill out.
Alex currently has an $8 million loan book and plans to reach $50 million by the end of the year. It hopes to be granted an unrestricted licence next year, and expects to be profitable in 2023.
The front-to-back technology platform is built on Temenos' Australia Model Bank methodology, which applies localied functionality to deliver new products and services faster. This will enable Alex to expand its scope of services from personal lending to deposits now that the bank has received its RADI license.
Alex chief Simon Beitz, says: “We are thrilled to launch to market as Australia’s newest digital bank, powered by The Temenos Banking Cloud. Temenos’ AI-driven digital banking platform simplifies our business operations so we can focus on our customers’ needs. It also allows us to keep our operating costs at an absolute minimum, so we can pass the benefits of better value, fairer banking services on to our customers.”