New kid on the block wins InfoChoice personal loan award
You may have a friend named Alex, but even if you don’t, when you think of Alex, you think of a relatable human being.
Which is exactly what Alex, Australia’s newest bank founded by former Suncorp executives Simon Beitz and Craig Fenwick, was trying to achieve when it first made itself known back in 2018 as an online personal lender.
Alex wanted to be relatable. It wanted to humanise banking and take an empathetic approach to its customers’ financial needs.
Alex wanted to make a statement that although it is digital, it still has a personal touch.
Its Unsecured Personal Loan is reflective of each of these traits and is also highly competitive.
InfoChoice recognises Alex’s inaugural product
Alex’s Unsecured Personal Loan is its inaugural product and has been in market for just over 12 months.
It is also the winner of the InfoChoice 2021 Banking awards for Unsecured Personal Loan in the non-bank category.
“Alex is a worthy winner of the Unsecured Personal Loan category” InfoChoice CEO Vadim Taube said.
“When we assessed Alex, we found that it not only met the set criteria but it turned out to have an outstanding interest rate and low fees.
It is testament to the team at Alex that it has delivered a highly-regarded, well sought-after award-winning product in such a short amount of time.”
In assessing the criteria, InfoChoice considered the lowest ascertainable cost of the loan based on a range of criteria.
For Alex, InfoChoice looked at its:
-Personalised fixed interest rates from as low as 5.45% (Comparison Rate 5.45%)
-$0 establishment fee (waived until 30 September 2021)
-Borrowing amount, which for Alex loans is between $2,100 and $30,000
-Repayment terms. Alex customers can choose flexible repayment terms between six months and five years and can choose to pay weekly, fortnightly, or monthly.
There are several other features that highlight the strength of Alex’s Unsecured Personal Loan. These include:
-100% digital product where a full application can typically be completed in around three minutes.
-No ongoing fees
-No additional repayment or early repayment fee
-Commitment to decision applications within 1 business day.
“We’re very proud of the customers we’ve been able to assist, the tech that we’ve built and the various awards we’ve taken out,” said Simon Beitz, CEO of Alex Bank.
“We now look forward to adding more products to our suite and helping our customers achieve their goals.”
When InfoChoice assessed Alex, they were still in the non-bank category. However, recently it became the first company to secure a restricted banking licence since December 2019.
Quick growth as Alex challenges the status quo
In July this year, Alex reported approximately A$35 million of capital was raised from private investors. It currently has an $8 million loan book, with plans to reach $50 million by the end of 2021.
Growth is coming quickly and in the last six months Alex has processed more than 10,000 personal loan applications – all within one business day.
Alex is working hard to meet the prudential requirements to be granted an unrestricted licence in 2022.
Its growth and popularity can be put down to the company’s attention to detail backed by the strength of its artificial intelligence.
Use of AI allows it to quickly assess applications and price for risk.
A biometric verification process embedded in the Alex platform is also used to improve identity verification. This takes place instantly through a photo capture of the applicant’s ID and a selfie.
The AI then ensures the customer is who they claim to be, which reduces the risk of stolen identity and fraud.
It sounds very technical; however, the use of AI and high-level encryption technology frees the bank’s staff up to take the personal approach to customers that it prides itself on.
It also allows Alex to keep its operating costs at an absolute minimum and thus pass the benefits of better value and fairer banking services on to its customers.
It works on four principles: fast, simple, fair, and human. And five key values: customers come first, we are one team, we care, we are humble, and we go beyond.
So, if you want to improve your home, buy a new car, consolidate your debt or go on a holiday when borders are once again open, Alex mixes technology with a personal touch to deliver one of the most competitive rates on the market.
Alex Bank is currently operating under a time-limited and restricted Banking Authority. More information about Alex's restricted Banking Authority is available at www.alex.bank/legal