Its original focus – the Australian consumer credit market – was worth $142 billion in loan assets (personal loans, credit cards, car loans, lines of credit) with $25 billion in new products or loans (including including change) in the next few years. 12 months.

And according to Alex there is much less competition with Xinja and Volt now irrelevant, while Suncorp Bank goes to ANZ, ME Bank went to Bank of Queensland, 86400 to NAB and UP Bank was acquired by Bendigo and Adelaide Bank.

At the same time, BNPL players and non-bank lenders are grappling with higher funding costs, which arguably makes the new Alex Bank attractive to borrowers.

Investors understand the pitch but, as always, want to see the numbers. Alex Bank estimates it could achieve a loan portfolio of $4.9 billion by FY26, the lion’s share of which would be personal loans sold through brokers and referrers and funded by deposits to term.

Alex Bank wants to be profitable starting in fiscal year 2025, when it expects to record $38.9 million on the NPAT cash line on income of $125.8 million.

In banking, to get that kind of high growth you need capital and Alex Bank has told potential investors that it will likely need to raise equity again in fiscal years FY22, FY23 and FY24, to fuel the fire.

As for the $25 million Series D round, the first $15 million was to meet APRA Tier 1 capital requirements, while the next $10 million would be disbursed. to working capital.

Alex Bank is 25.2% owned by management and has already expanded its share register with increases in 2021 and 2020.