Australian neobank Alex has added to its growing suite of banking products, with the live launch of a new fixed term deposit hosted on Temenos Banking Cloud.
Alex was granted an unrestricted banking licence – it had previously held a restricted authorised deposit-taking institution (RADI) licence since July 2021 – by APRA in December 2022, providing a green light for it to launch its term deposit offering.
Alex began its formal relationship with Temenos in 2021, deploying the banking-as-a-service (BaaS) developer’s flagship solution back in August of that year. At the same time, Alex unveiled its personal loans service – which boasts application completion times of under three minutes – and savings accounts.
To date, Alex chief executive Simon Beitz said, the neobank has “approved thousands of personal loan applications” worth upwards of $55 million. As of December 2022, Alex said it supports more than 2,500 customer accounts.
Temenos Banking Cloud, the BaaS developer said, provides for its clients an end-to-end digital banking platform combining onboarding and channel services in the front end with core banking for retail customers in the back.
“We are thrilled to have received our unrestricted banking license and launched our term deposit product to market,” said Alex Bank chief executive Simon Beitz.
“The Temenos Banking Cloud has been key to going to market quickly and delivering experiences that are simple, streamlined, and tailored to our customers’ needs. In just under three months since launching we are achieving healthy flows of deposits to match fund our lending.”
“This allows Alex Bank to rapidly grow its balance sheet and improve our cost of funds and margin. Ultimately benefiting our customers as we pass these savings through.”
Recent benchmarking tests saw Temenos’ BaaS solution achieve a record-breaking 150,000 transactions per second.