Alex Bank or more informally, Alex, is an online lender and one of Australia’s newest digital banking players.
Founded in 2018 with headquarters in Brisbane, Alex has a pretty simple philosophy: build a digital bank which offers straightforward products while keeping things as down to earth as possible (hence the name).
And guess what? Alex Bank is already up and running. They launched a personal loan in July 2020 and in July 2021 it was granted a restricted authorised deposit-tasking institution (R-ADI) licence by APRA which allows Alex to offer deposit products like bank accounts and savings accounts.
Speaking of which, Alex has indicated that a savings account will be the next product to launch, though when exactly that will hit the market is currently unclear. But we’ll dive into that and Alex’s other products below.
Alex Bank already has a personal loan available to Australian borrowers and it looks like a savings account will be the next product off the production line, but we bet you’d like a little bit more information on both of these products, so here you are:
Alex Bank Personal Loan
|Fixed interest rate||From 5.95% p.a. (5.95% p.a. comparison rate*)|
|Borrowing amount||$2,100 - $30,000|
|Fees||$295 application fee (waived until 30 September 2021)|
Alex have kept to their motto of keeping things simple with the Alex Personal Loan. Borrowers can apply for an unsecured loan between $2,100 and $30,000 over a one to five year period which can be used for everything from purchasing a car to paying for a holiday.
The interest rate you’ll be able to receive is based on your credit history and there’s a one-off application fee of $295 (fee will be waived until 30 September 2021), though there are no ongoing fees.
According to Alex, borrowers can apply for the loan online with zero paperwork in just three minutes.
Alex Bank Savings Account
Thanks to its newly acquired restricted banking licence, Alex Bank does have the option of offering a savings account, or other deposit accounts for that matter, to its customers. However, it looks as though the bank will wait until its accredited as a full ADI before doing so, though it sounds like a future Alex savings account is likely to be a ‘no strings attached’ account with a competitive rate and no fees. In the meantime, you can register your interest for an account via their website.
Alex Bank hasn’t actually launched an app just yet. For the moment, that means that the Alex personal loan can only be applied for online via their website. The app is apparently very close to hitting the various app stores though.
Looking for a personal loan with a competitive rate and relatively simple online application process? Alex could tick all the boxes in this department, especially for borrowers with good credit history.
However, if you're searching for a new bank to call home, Alex probably can’t fill that role quite yet. While they’re on their way to building a digital bank, Alex doesn't have the full range of products you may want from a bank such as bank accounts, savings accounts or home loans. Watch this space though.
Like the sound of the Alex personal loan? You’ll be able to start an application via the alex.com.au website in the link below. That's where you’ll also be able to keep track of any other product announcements in the future.