Backed by Grab and Singtel, the digital bank's customers can earn interest of 1.58% p.a.
Backed by a consortium consisting of Grab Holdings (Grab) and Singtel, GXS Bank (GXS) has launched as Singapore’s first digital bank for consumers and businesses.
The launch on Aug 31 comes more than a year and half after the Monetary Authority of Singapore announced four successful bids for digital banking licences here — two are digital full banks and two are digital wholesale banks.
Styled as a “digital native”, the digital bank’s main product is the GXS Savings Account, targeted at gig economy workers, self-employed entrepreneurs, small businesses and those new to the workforce.
At launch, customers can deposit up to $5,000 into their accounts. According to GXS, the account allows them to earn interest daily at 0.08% p.a. The interest earned will be accrued up to five decimal places and credited to accounts with every cent earned. In contrast, POSB, the most commonly used bank, offers 0.05% for the first $10,000.
To encourage a habit of saving, GXS customers can also customise up to eight Savings Pockets within their accounts.
Designed to help users save for specific goals, users can transfer funds anytime from their main savings accounts to individual Pockets. Customers also earn greater daily interest with Pockets at 1.58% p.a.
In addition to naming their Pockets after their goals, users can also choose photo labels. To help them stay on track, the app will send “nudges” to users, encouraging them to top up their Pockets when they are close to reaching their saving goals, says GXS.
According to Charles Wong, Singapore CEO of GXS, the bank will leverage Grab and Singtel’s platform users, which together welcome more than three million Singaporeans daily. “GXS is uniquely positioned to learn and to refine the banking experience so that it is extremely personalised and relevant to customers because we are part of a powerhouse ecosystem that includes Grab and Singtel.”
Wong had spent two decades at Citi before joining Grab in April 2020 as senior managing director. He took on the lead role at GXS in April 2022.
Wong adds: “The frequent interactions between consumers and the platforms within our ecosystem provide us with deeper and sharper insights on what our customers need and how we can serve them seamlessly across all touchpoints within our ecosystem.”
GXS’s digital bank app will be available in Apple’s App Store and the Google Play Store from Sept 5.
The bank’s services will be rolled out progressively, says GXS, starting with selected employees and underbanked customers within GXS, Grab and Singtel, followed by consumers thereafter.