# The neobank’s main selling point is its tech-based agility in comparison to older Big Four banking rivals.

*fintech · news · 2023-03-20 · Australian Financial Review*

## Key points

- Alex Bank operates entirely on the cloud, unlike major banks using on-premise data centres.
- Alex Bank targets a 4% average cost of funds with a 5% lending margin.
- The bank distributes loans primarily through brokers and aggregators covering 80% of the market.
- Alex Bank expects to achieve profitability by December 2023, focusing investor meetings on this milestone.
- Existing investors have shown strong interest in Alex Bank's current funding round despite tougher capital conditions.

**Companies:** Commonwealth Bank, Westpac, AMP Bank, Pepper, Resimac, Liberty, AFG Home Loans, Loan Market Group, Consolidated Finance Group, Nano, Openpay
**Countries:** Australia

[Read the full story on Australian Financial Review](https://www.afr.com/technology/after-svb-scare-boring-aussie-neobank-seeks-130m-valuation-20230317-p5ct4p)

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