Get to know us better
Alex isn’t a person, but a small team of banking, design and technology activators, inspired to make things better by embracing simplicity.
We are building a bank*. One that aims to remove the complexity in banking, one that aims to proactively work for you so you can focus on the things that matter.
It’s still early days.
We are keen to help by first focusing on helping you to get better loans before we move to better savings. Afterall nobody should pay more than needed. The driving force behind us is a desire to put the good back into the industry.
Our personal loan product is already live for a few selected customers, and we are looking to make this publicly available end of the first quarter in 2020.
Savings, as well as the rest of our products, will be made available as soon as we possibly can during the year.
A neobank is a new type of bank, where the infrastructure is entirely cloud-based. Neobanks offer their services via web or app and don’t rely on existing banking infrastructure such as physical branches or old legacy systems. They normally have a faster and easier to use interface and products and lower costs.
Not having legacy infrastructures or branches means that we can keep our costs low and shift the balance back to you. Balance means fewer fees and more money in your pocket.
Digital Banks, in most cases, are online-only banks which provide services through online banking platforms and smartphone apps. They typically don’t offer in-branch services and leverage the existing infrastructure of traditional banks.
A digital bank is (in most cases) the online arm of a large traditional bank, while a neobank is a completely separate, digital-only entity that isn’t associated with any traditional financial institution.
A traditional bank is just that. Think of the Big 4.
First, we should explain what an Authorised Deposit-Taking Institution (ADI) is. Financial Institutions in Australia are only authorised to accept deposits from the public if they are an ADI.
A Restricted Authorised Deposit-taking Institution (Restricted ADI or RADI) is an institution which operates under a specific licence granted by the Australian Prudential Regulatory Authority (APRA) – the body that governs the banking industry in Australia. The RADI license, among other things, limits the amount of money a RADI institution can hold in deposit at any given time.
This new licencing framework allows companies that wish to become a bank to seek a Restricted ADI licence before becoming a fully-fledged bank which would operate under an unrestricted ADI license.
The Australian Government implemented this licensing framework in an effort to increase and drive competition in the Australian banking sector.
It allows Alex to develop our capabilities and build our products with the goal of becoming an unrestricted Authorised Deposit-taking Institution (ADI) within a maximum period of 2 years.
The same rules apply as for all banks in Australia. All our customers’ deposits are protected under the Financial Claims Scheme (FCS) up to the value of $250,000.
Prudential is an adjective, meaning “The quality or state of being prudent; wisdom in the way of caution and provision”.
In our instance, Prudential Regulation is concerned with maintaining the safety and soundness of financial institutions in order to provide the community with the confidence that we will meet our financial obligations under all reasonable circumstances.