Australian digital lender, Alex Bank has received a license to operate as an Authorised Deposit-taking Institution (ADI) in the country only 18 months after receiving the Restricted ADI license from the Australian Prudential Regulation Authority (APRA).

Alex Bank Develops New Deposit Capabilities

“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,” said Simon Beitz, the CEO of Alex Bank.

Confirmed on Wednesday, the new approval will allow the digital bank to operate without any restrictions, meaning it can expand its product offerings. The neobank now offers personal loans and savings accounts but is planning to include term deposits.

Alex Bank was established in July 2018 by Simon Beitz and Craig Fenwick. With its two offices in Sydney and Brisbane, the digital bank went live last August with its cloud-based software. It is now supporting more than 2,500 customer accounts.

“This is only the beginning for Alex Bank. During the past three financial years, we have grown our revenue by a compounding annual growth rate of 717% and are grateful to have been recognized as one of Australia’s fastest-growing companies,” Beitz added.

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Alex Bank Carves Out Niche as Others Struggle with Digital Banks in Australia

Alex Bank received the ADI license when other neobanks in the country were struggling. Earlier this year, Volt, one of the four Aussie digital banks to obtain APRA licenses, shuttered services and renounced its license. It returned around AU$113 million ($78 million) in customer deposits and sold its mortgage book.

Xinja, another of the first four Aussie digital banks, shuttered earlier, while the National Australia Bank acquired 86400. Only Judo, which went public in November 2021, is operating but is struggling with a near-record stock price.