Alex Bank Pty Ltd ABN 13 627 244 848, Australian Financial Services Licence and Australian Credit Licence 510805 (Alex, We, Us or Our).
This Target Market Determination (TMD) sets out the target market for our Savings Account.
Product Description and Key Attributes
The Savings Account key attributes that will impact whether it is likely to be appropriate for the target market include:
- a 100% digital online application process;
- an ongoing variable interest rate that is subject to change over time;
- no upfront or ongoing monthly account keeping fees;
- the flexibility to make and receive payments digitally using online banking; and
- no introductory, honeymoon or bonus interest rate conditions.
Description of objectives, needs and financial situation
This product is appropriate for a customer with the following likely objectives, needs and financial situation, including a customer:
- with a need to deposit money with a Bank;
- who wants the flexibility to be able to access their money ‘at call’;
- who wants to earn interest; and
- who is comfortable to transact electronically and receive all notices via email or via Alex Electronic Banking.
This product is not suitable for a customer that:
- wants to earn interest at a fixed interest rate;
- wants to make BPAY or Osko by BPAY payments;
- wants to make payments by direct debit;
- wants to make scheduled recurring electronic payments in Electronic Banking (single transactions are supported);
- requires an overdraft facility;
- requires a joint savings account or needs an authorised representative to act on their behalf with access to Alex Electronic Banking. No online access is supported for appointed attorneys, advisors or other representatives; or
- does not have basic digital access, for example access to email for purposes of receiving electronic customer communications.
Description of Customer Profile
- This product is only available to customers that meet Alex identification requirements and are:
- 18 years or older;
- An Australian Citizen or Australian Permanent Resident with the ability to provide Alex with a valid Australian issued Photo ID (Passport or Drivers Licence); and
- Residing in Australia at the time of the application.
- The Alex Savings Account is subject to our Savings Terms and Conditions, available at www.alex.bank.
- The product is appropriate for the target market on the basis that the key attributes of the product, as set out in this determination, address the objectives, financial situation and needs of consumers in the target market.
- We have placed conditions and restrictions on the distribution of the product to ensure it is distributed to customers in the target market.
- This product is primarily marketed and promoted through digital marketing with direct application at www.alex.bank. We may, from time to time choose to pause distribution of this product to all new applicants by restricting application via our website. This will be communicated on the website.
- These distribution conditions are appropriate given the scope of the target market and eligibility criteria.
- If we become aware that the distribution conditions are inadequate, where for example, significant distribution is occurring outside the target market, Alex will undertake a review of this TMD.
- The events or circumstances (‘review triggers’) that would reasonably suggest that the TMD is no longer appropriate and would trigger its review are:
- invitations made to customers from outside the target market;
- significant dealings meaning a material pattern of dealings in the product or distribution conduct that is inconsistent with this determination;
- a material change to the product including the introduction of promotional features;
- a material change in law or regulatory guidance;
- internal complaints or notice of complaints made to the Australian Financial Complaints Authority, considering the nature and trend of the complaint(s);
- a notification from the Australian Securities and Investments Commission (ASIC) requiring immediate cessation of the product or particular conduct in relation to the product.
We will review this TMD within 10 business days if we know or reasonably know, that a review trigger has occurred.
Periodic Review: Subsequent periodic reviews will occur at least annually.
- We will also review this TMD in response to any review triggers or other events or circumstances that would reasonably suggest that this TMD is no longer appropriate.
- We will notify ASIC within 10 business days of us becoming aware of a significant dealing in the product that is not consistent with this TMD.
- We will integrate the review process into our product governance arrangements, and controls will be put in place to ensure that meaningful reviews take place. Possible outcomes from the review process include:
- no change to the way the product is distributed; or
- changing the product design, target market or distribution.
Distribution Information Reporting Requirements
- We understand complaints, events of defaults and general feedback about the product are useful indicators of whether this TMD is still appropriate.
- As Alex is the sole distributor of the product, we will monitor the occurrence of these events and take them into account when determining whether this TMD remains appropriate.