Newest ADI launches term deposits

The non-major bank aims to improve on both its deposits and lending through offering fast, simple, and competitive products and services for brokers and clients.

The new product, launched in partnership with Australian Money Market (AMM), is designed to offer customers “secure and profitable” investment options under the protection of the Australian government’s Financial Claims Scheme deposit guarantee of up to $250,000.

The product provides Alex Bank customers with the security of locking a fixed rate of return along with a bonus for customers who continue to roll over with the bank.

Chief executive of Alex Bank, Simon Beitz, said: “This launch signifies a crucial turning point in our journey towards a full range of banking products and significant lending growth. It also presents us with the opportunity to match fund our own lending portfolio.

“I am proud of this product and firmly believe that we have introduced a robust offering to the market, with competitive rates and terms that will benefit our customers, protected by the Australian Government guarantee.”

On the partnership with AMM, Mr Beitz commented that partnerships are a “vital aspect for Alex Bank” and referred to investing in them as a “natural inclination” for the non-major bank.

Managing director of AMM Stephen Jewell said: “We’re excited to partner with Alex Bank on their Term Deposit which has already sparked interest amongst our client base over the last week.”

APRA grants Alex Bank ADI licence

Alex Bank was granted a full banking licence from the Australian Prudential Regulation Authority (APRA), allowing them to operate as an authorised deposit-taking institution (ADI) late last year after it received its restricted ADI (RADI) license in July 2021.

After developing broker partnerships throughout 2022, Alex Bank now has access to a large cohort of brokers following a range of aggregator partnerships with AFG, Loan Market, Fintelligence brokers and Platform Finance.

Mr Beitz commented on receiving the ADI: “This is a proud moment for the entire Alex Bank team.

“It represents the culmination of several years of hard work and enables Alex Bank to accept deposits and scale our business leveraging our investment in new generation technology that enables fast and efficient straight-through processing.

“We’re excited to expand our suite of products including term deposits, adding to our award-winning Personal Loan and Savings Account.”

The non-major bank has offices in Brisbane and Sydney, supporting over 2,500 customer accounts.

[RELATED: Alex Bank becomes a full bank]