Today we’re going to talk about a digital bank that is backed by two of Singapore’s technology and telecommunications powerhouses Grab and Singtel. 

You might have guessed by now that we’re talking about GXS Bank. Launched in August 2022, GXS was positioned to address the pain points of Singapore’s underserved consumers such as gig economy workers, self-employed entrepreneurs and early jobbers in meeting their saving goals. 

GXS said this was done through its products offerings such as daily interest crediting which was new to the industry at the time, helping its consumers, who may be more cash-strapped with their cash flows. 

The bank started out two years ago by targeting users across the Grab and Singtel ecosystem, which rounded up to a potential market of about 3 million customers here in Singapore. 

Its products, like its flagship savings account, were also only limited for selected Grab and Singtel customers, with a deposit cap of S$5,000 due to regulatory reasons. 

The product, however, was opened up to new customers in July 2023 and the cap was also raised after a review by authorities. 

So how far has that bolstered GXS Bank’s customer acquisition, and levelled the playing field between digital banks and traditional players? Also – how far has its positioning reaped financial benefits? 

Meanwhile, Grab had in January this year injected S$145.1 million into GXS Bank.  Both Grab and Singtel are also set to put in a further S$229.5 million into the digital bank in Q3 this year. But what were the reasons behind the move and how does GXS Bank intend to use the money?

On Under the Radar, The Evening Runway’s finance presenter Chua Tian Tian posed these questions to Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank.