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The digital bank has reported its “strongest year” in its financial year 2023 results, driven by continued broker channel commitment.
Six months on from being granted its authorised deposit-taking institution (ADI) licence, digital bank Alex Bank has now released its financial results for the year ending 30 June 2023.
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According to the bank's figures, it lent $74 million in personal loans over the last financial year, an increase of 94 per cent.
The bank attributed its lending growth during this period to its “strong commitment to cultivating and accelerating” its broker channel.
Of the $74 million personal loans settled, $37.5 million came from the broker channel.
Additionally, Alex Bank reported “record high” lending settlements in June 2023 at $10.23 million, with 90 per cent coming from brokers.
Furthermore, the bank’s number of accredited brokers increased 272 per cent over the last six months to include over 800 accredited brokers.
The neobank also announced it has joined the lender panel of asset finance aggregator Savvy Group, the latest in its broker partnerships, which also include Australian Finance Group (AFG), Fintelligence brokers, and Platform Finance.
The bank's deposit portfolio achieved a compounded monthly growth rate of 74 per cent in the 6 months after launch, reaching $34 million as of 30 June 2023.
Alex Bank chief executive Simon Beitz commented on the results, stating: “Despite the constantly evolving landscape, Alex Bank has successfully navigated the challenges, ultimately benefiting both its valued customers and the overall business.
“Our 100 per cent digital infrastructure and proprietary technology have resulted in significantly reduced overheads and operating costs.
“This allows us to not only pass on cost savings to our customers but also accelerate our journey towards achieving profitability.
“I’ve made no secret of the fact that Alex Bank is here to challenge and that we are on an aggressive growth path – but doing what’s fair, right, and responsible by the customer will always be a top priority.”
Speaking of the partnership with Savvy Group, Alex Bank chief commercial officer Steven Degetto added the bank was excited to bring its personal loan to more Australians through the aggregator’s broker network.
Managing director of Savvy Group, Bill Tsavoulas, said: “At Savvy, our priority is to provide our customers with the best, most suitable products on the market, which is why we are thrilled to be welcoming Alex Bank on board.
“This partnership enables our brokers to consider personal loan products from one of Australia’s newest and most exciting financial institutions, providing more quality to our processes and value to our customers.”
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