Australia’s newest digital bank goes live on Temenos

  • By Elizabeth Fry

Alex, Australia’s newest digital bank has gone live with its cloud banking software to help speed up loan applications and boost its product range. 

The digital bank said the Temenos technology has powered Alex’s launch as a licensed bank after the neo bank was granted a restricted license from the prudential regulator earlier this month. 

The neo bank - which is built on The Temenos Banking Cloud - plans to disrupt the Australian retail banking market with “fast, simple, fairer, and more human banking” to address the digital preferences of millennial and gen-Z consumers.  

The Temenos technology simplifies Alex’s loan application journey, facilitating 3-minute application times which has enabled the delivery of nearly 10,000 loans in the last six months. 

It's packaged banking services will also enable the quick launch of Alex’s savings business line so the bank can achieve rapid time to value and maximize growth and profitability. 

Alex said Temenos has created a hyper-efficient cost structure that enables the bank to offer better consumer credit options, like fast, competitive loans with no upfront, ongoing or hidden fees. The digital bank said the end-to-end digital banking platform automates manual loan application processes to generate fast and simple customer journeys.  

Digital and human 

The neo bank said the technology will also allow it to quickly widen its scope of services from personal lending to deposits now that the bank has won its license. “Our next product in market will be our high interest savings account which will see deposits from customers fund loans and credit for other customers, while interest generated from borrowers will fund the interest paid to savers. The dual lending and deposit model is what will drive our initial growth and profitability,” said fAlex chief executive Simon Beitz 

 The former Suncorp innovation head saidTemenos’ AI-driven digital banking platform provides the perfect foundation for Alex - a bank that is both digital and human.  

“Temenos’ ultra-efficient cloud technology simplifies our business operations so we can focus on our customers’ needs and help them to get more of the things in life they really care about. 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,” Beitz said. 

The fintech was founded in 2018 by Beitz and Suncorp colleague Craig Fenwick. Beitz also co-founded EML Payments.