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The digital challenger bank has reported rapid loan growth coming from the broker channel between January and February.
Since Alex Bank was granted a full banking licence from the Australian Prudential Regulation Authority (APRA), it has reported that 90 per cent of new loans in January and February have stemmed from brokers.
APRA approved Alex Bank to operate as an authorised deposit-taking institution (ADI) in December last year after it received its restricted ADI (RADI) licence in July 2021.
Furthermore, the non-major bank has seen an increase of 56 per cent in personal loan originations since the start of 2023.
Alex Bank utilises its purpose-built broker portal technology that is accessible 24/7 to accredited brokers in order to streamline the loan application process.
According to Alex Bank, this portal connects directly to its origination system that allows brokers to see any change in the status of an application in real time.
The non-major bank has been focused on developing broker partnerships during 2022, having accredited over 75 per cent of lending aggregators in Australia such as AFG, COG Aggregation, Loan Market, and Fintelligence.
Chief executive of Alex Bank, Simon Beitz, commented on these results: “It’s fantastic to see our bank growing, and I’m thrilled to see our broker partnerships getting stronger.
“Partnerships, especially those with our broker network, have always been a central focus for us, and we will continue to invest in them.”
Mr Beitz stated the bank is “continually improving” its technology based on feedback and input from broker partners.
“Just this month, we have released a new feature that allows brokers to chat directly with the assessor managing their client’s application in real-time,” Mr Beitz added.
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“Queries from brokers are now resolved within minutes — making it a game changer for both our assessors and broker partners.”
Launch of ADI term deposits
In early February, Alex Bank launched term deposits in what it said was “a crucial turning point” in its lending growth journey.
Launched in partnership with Australian Money Market (AMM), the new product is designed to offer customers “secure and profitable” investment options under the protection of the Australian government’s Financial Claims Scheme deposit guarantee of up to $250,000.
The product also provides the non-major bank’s customers with the security of locking a fixed rate of return and a bonus for customers who continue to roll over with the bank.
Mr Beitz said at the time of the launch: “This launch signifies a crucial turning point in our journey towards a full range of banking products and significant lending growth. It also presents us with the opportunity to match fund our own lending portfolio.
“I am proud of this product and firmly believe that we have introduced a robust offering to the market, with competitive rates and terms that will benefit our customers, protected by the Australian Government guarantee.”
[RELATED: Newest ADI launches term deposits]
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