- Alex, Australia’s newest digital bank, goes live on The Temenos Banking Cloud to create a hyper-efficient cost structure and offer better value lending products and services to retail customers
- Temenos technology simplifies Alex’s loan application journey, facilitating 3-minute application times and the delivery of nearly 10,000 loans in the last six months
- Temenos’ packaged banking services will enable the quick launch of Alex’s savings business line so the bank can achieve rapid time to value and maximize growth and profitability
Temenos (SIX: TEMN), the banking software company, today announced that Australia’s newest digital bank, Alex, has gone live on The Temenos Banking Cloud. Temenos technology powers Alex’s launch as a licensed bank, following the acquisition of its Restricted-Authorized Deposit-Taking Institution (RADI) license from the Australian Prudential Regulation Authority (APRA) earlier this month.
The new digital bank was built on The Temenos Banking Cloud 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. With Temenos’ SaaS technology, Alex 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 end-to-end digital banking platform automates manual loan application processes to generate fast and simple customer journeys. Temenos technology has already supported the bank to process almost 10,000 loan applications in the last six months, with each application taking the customer just three minutes to fill out.
Alex’s front-to-back platform uses Temenos’ pre-configured Australia Model Bank methodology, which applies localized functionality to deliver new products and services faster. This will allow the bank to quickly expand its scope of services from personal lending to deposits now that the bank has received its RADI license. Using The Temenos Banking Cloud, Alex will be able to simply and cost-efficiently scale its business and bring to market a portfolio of products to improve the consumer credit and banking experience for Australians.
The Temenos Banking Cloud is a SaaS banking solution that gives Alex total control to deploy banking services that are easy to consume, configure and integrate with external applications. It combines the Temenos Infinity onboarding and channels services and the Temenos Transact retail lending banking service.
Simon Beitz, Chief Executive Officer, Alex, commented: “We are thrilled to launch to market as Australia’s newest digital bank, powered by The Temenos Banking Cloud. Temenos’ 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.”
Jean-Paul Mergeai, President International Sales, Temenos, said: “Temenos is proud to support Alex on its journey to make banking human in Australia. Temenos technology supports more than 70 challenger banks worldwide, helping them scale fast and grow profitably while providing differentiated digital banking services to their customers. By choosing to run their operations on The Temenos Banking Cloud, Alex will gain control of its business model and innovation cycles. This means having the agility to launch new products and entire business lines fast and without complexity, delivering better value to its customers.”
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Alex was founded in 2018 by seasoned industry professionals Simon Beitz and Craig Fenwick with a mission to revolutionise banking in Australia by focusing on what matters to customers – speed, simplicity, fairness and a more human approach to banking products and services. Its team of energetic bankers include a board of diverse and experienced corporate professionals and its shareholders are some of Australia’s most respected private and corporate investors.
Alex Bank Pty Ltd ABN 13 627 244 848 (“Alex”), Australian Financial Services Licence and Australian Credit Licence 510805, is authorised by the Australian Prudential Regulation Authority (“APRA”) to operate under a time-limited and Restricted Authorised Deposit-taking Institution (“Restricted ADI”) licence. Under its Restricted ADI Licence, Alex does not yet meet APRA’s full prudential framework for an Authorised Deposit-taking Institution (“ADI”). Further information regarding Alex’s Restricted ADI licence is available at www.alex.bank/legal
1 Alex’s initial personal loan product has secured the Finder Finalist Award for Risk-Based Unsecured Personal Loans, Canstar 5-Star Rating 2020 Award for the Excellent Credit Unsecured Personal Loan, Mozo Expert’s Choice Award for Best New Personal Loan and RateCity Gold Award for Excellent Credit Personal Loan.
Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence.
Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.
For more information, please visit www.temenos.com.