GXS Bank is the only digital bank among the top 6 lenders for personal loans in Singapore; Business banking to launch across the region in 2025
SINGAPORE, Nov. 20, 2024 /PRNewswire/ -- GXS Group announced today that its rate of growth from January to September 2024 has doubled over that of the same period last year.
This comes as GXS Bank in Singapore and its subsidiary GXBank in Malaysia continue to build their suite of products, enabling more consumers to save, borrow and transact with ease on the banks' mobile apps.
In Indonesia, the Group works closely with Superbank, which shares the same parentage as GXS Bank, with Grab and Singtel among its shareholders. Superbank also leverages the same core banking system, technology, data and product infrastructures which are used across the Group.
More than 3 million customers in the region hold either a GXS Bank, GXBank or Superbank account[1].
Mr Muthukrishnan Ramaswami, Group CEO of GXS Bank, attributed the Group's increasing rate of growth to its "many brands, one bank" strategy.
"At GXS Group, we have built what I would call a 'GXS digital bank operating system (GXS OS)' - in short, a bank in your pocket. The GXS OS is the backbone of our digital banks and is complemented with the in-market expertise of our people, whose deep understanding of the nuances in each country helps our speed to market. This business model has enabled three digital banks to launch in the space of just two years, and we are now seeing growth and increased momentum across the Group as we leverage solutions across multiple markets," Mr Ramaswami said.
Considered approach to serve customers sustainably for the long term
GXS Bank, GXBank and Superbank share the same mission of improving financial inclusion and serving the underserved in their markets. To do so sustainably, the digital banks ensure that they have a strategic mix of underserved individuals and mass affluent customers.
In Singapore, four in five GXS Bank customers are underserved. They could be at the early stages of their careers and under the age of thirty, gig economy workers or self-employed entrepreneurs who may not earn a fixed monthly income. This also includes the 25 per cent of GXS FlexiLoan customers who had no or thin credit bureau records when applying for the loan.
These customers have shown that they are reliable savers. Their average savings grew 60 per cent year on year, outpacing the average deposit balance growth rate across the Bank. They are also disciplined borrowers. Eighty per cent of GXS FlexiLoan customers in this segment have made at least one early repayment to benefit from the product design which calculates interest daily. In addition to enabling customers to enjoy interest savings, the product also does not impose any early repayment fees.
GXS Bank's innovative product design and customer experience has also appealed to customers from the mass affluent segment, such as the 20 per cent of GXS FlexiLoan customers who earn $8,000 or more each month. They tend to hold more sizable loans, with their total loan amount making up close to 60 per cent of the Bank's loan book.
The mass appeal of the GXS FlexiLoan has resulted in steady loan growth for the Bank. In the past six months, GXS Bank has seen loans double to 200,000 and is now one of the top six banks for personal loans in Singapore.
2025: The year of scaling up for GXS Group
Having launched its retail banking services successfully, GXS Bank is on track to launch its business banking solutions in the first quarter of 2025. Business banking services will be rolled out progressively in Malaysia and Indonesia.
In Singapore, GXS Bank will first open its business banking services to sole proprietorships and micro-businesses as these companies are typically underserved by traditional business banking services. As such, they generally have unmet financial needs including access to loans for business expansion.
GXS Bank has been running a pilot programme with selected sole proprietorships in its ecosystem to co-create and refine its business banking proposition. One in two proprietorships in Singapore are either served by or are partners of Grab and Singtel.
GXS Bank will progressively expand its pilot programme to sole proprietorships outside its ecosystem in the coming months.
Companies who sign up for GXS Bank's business banking service will be offered a business operating account with an unsecured business line of credit, if they are eligible for the latter. The GXS Biz Account and GXS FlexiLoan Biz share the same innovative and market-disrupting product constructs as their retail banking counterparts, such as daily interest crediting for deposits, no early-repayment fees and interest savings when they repay their loans early.
"All three digital banks in Singapore, Malaysia and Indonesia have launched a suite of retail banking solutions that cover all fundamental banking needs - save, borrow and spend. Our business banking solutions are also well under way and will be rolled out in the three markets in the near future. We are well-positioned to grow our business and serve even more customers in the coming year. 2025 will be the year of significant scaling up for the digital banks in the GXS Group," Mr Ramaswami said.
[1] Source: GXS Bank, GXBank and Superbank data |
About GXS Bank
GXS Bank is a digital bank focused on making banking better for the everyday consumer and small businesses. This includes Singapore's underserved individuals and businesses.
The Bank aims to improve financial inclusion and to drive financial revolution for its customers through the secure and ethical use of technology and data.
GXS Bank holds a banking licence issued by the Monetary Authority of Singapore.
GXS Bank works closely with GXBank, its digital bank subsidiary in Malaysia and Superbank, a digital bank in Indonesia.
