GXS Bank, a digital banking joint venture between Malaysian ride-hailing company Grab Holdings and Singapore telecom operator Singtel, announced on Wednesday, nearly two years after receiving its digital banking license from the Monetary Authority of Singapore, its first Launched financial products.
The company’s GXS Savings Account, launched today, allows customers to earn interest daily with no minimum balance requirements.
GXS aims to leverage the technological strengths of both Grab and Singtel, whose platforms are used by over 3 million Singaporeans, to serve customers, including the underbank segment.
GXS Singapore CEO Charles Wong said the digital bank will optimize basic savings accounts to support the needs of entrepreneurs, gig economy workers and early workers. “Over the next few months, we will also address other obstacles that prevent consumers and small businesses from reaching their goals faster, such as increasing wealth and accessing credit,” he said in a company statement. says.
Last April, Bank Negara Malaysia granted a digital banking license to the Kuok Brothers consortium of Grab, Singtel and Robert Kuok. At that time, a total of five licenses were awarded by regulatory authorities.
Grab reported a loss of $970 million in the first six months to June 2022. That compares to $1.4 billion he made in the same period last year. Grab’s ride-hailing and delivery business is not yet profitable.
The company’s first six-month revenue increased 39% to $549 million. Financial services contributed his $13 million, accounting for 2.3% of his overall revenue, but shows him a 94% increase from the same period in 2021.
Nirgunan Thiruchervam, Head of Consumer Equity Research at Terimer Research, said digital banking is a “big move” for Grab to expand its reach in the financial services sector, especially in Singapore, which has the highest smartphone penetration in the world. the ideal way,” he said. And investors are backing the move.
“Ride-hailing and food delivery will be the mainstays. [Grab’s] Earnings. But the market seems to be valuing digital banks in multiples of their total transaction value,” Tilchervam said.
Grab was co-founded by Anthony Tan and Hooi Ling Tan in 2012 as a taxi booking app, but has since grown into a super app that incorporates a variety of services into its platform. We currently operate in 480 cities in 8 countries in Southeast Asia.